Water Submetering in Colorado

Colorado allows water sub-metering and billing for water use, and Dune has the most innovative and easy-to-deploy solution on the market

Water Submetering Regulations in Colorado

Colorado has one of the highest submetering penetration rates in the Western US, driven by the increasing cost of water and conservation benefits of submetering .

When submetering water, always refer to state and local regulations (some useful links are listed below).

Key regulations for property owners in Colorado include:

All new multifamily, condo, and mixed-use buildings with separate dwelling units must now include individual water meters or submeters for each unit at construction.
While the mandate primarily targets new builds, existing properties undergoing major plumbing upgrades are strongly encouraged to adopt submeters wherever technically feasible — particularly through non-invasive solutions like clamp-on ultrasonic meters, which minimize disruption.
The Colorado Public Utilities Commission (PUC) continues to regulate investor-owned (private) water utilities, ensuring fair rates and service standards.
Property managers, HOAs, and mobile home parks may bill tenants for actual metered usage as long as total charges do not exceed the master water bill.
Property owners remain responsible for the maintenance, calibration, and reading of submeters, as well as for providing tenants access to usage data upon request.
HB25-1090 supports Colorado’s water conservation and ESG goals, encouraging adoption of IoT-enabled, smart metering systems that detect leaks, prevent waste, and provide data-driven transparency across multifamily housing.

Additional information on Water Sub-metering in Colorado**:

**This list isn’t intended to be comprehensive, and there may be other state and local regulations to consider.

Learn more about Dune Water Submetering Solution

Why Water Submetering is Growing in Colorado?

Given the high and increasing cost of water, submetering is gaining popularity in Colorado. Helping property owners recover expenses increases net operating income (NOI) and property values while encouraging conservation. When tenants are held accountable and pay for what they consume, they are more likely to use water more efficiently and reduce waste.

Modern submetering systems offer automated and remote meter readings, saving considerable time and money. They also improve accuracy and consistency, providing precise and reliable water usage data. This technological enhancement supports better water management practices, which is essential in Colorado, where water resources are scarce and conservation is critical.

Advanced submetering solutions often feature sophisticated leak detection and alerting capabilities as well. These systems can quickly identify leaks and send timely alerts to managers and owners, enabling prompt repairs that can save money, reduce water waste, a prevent escalating issues that could cause more significant property damage.

Colorado’s condo complexes, driven by tourism and the demand for affordable housing, are often master-metered for water, with HOA fees covering the total water bills. The rising cost of water has led to increasing HOA fees, causing frustration among various ownership groups. Water use varies significantly between short-term fractional renters, long-term renters, and owner-residents.

Submetering enables the cost of residential water to be separated from other HOA fees, ensuring that individual residents and owners pay only for what they use. This monitored and controlled expense promotes fairness, accountability, and responsible usage, ultimately leading to lower overall expenses, more control, and conservation.

Furthermore, Water submetering promotes conservation and efficient water management, essential for dealing with diverse climate conditions in Colorado. Advanced clamp on solutions that use ultrasonic measuring techniques have no moving parts or interface with the water and so are not susceptible to freezing in cold weather, making them a great solution across the state, particularly in colder climates.

Benefits of a Connected IoT Water Submetering Solution

Learn about the wide-ranging advantages of a Connected IoT Water Submetering Solution-

Enhanced Expense Recovery: By accurately recovering water costs, operating expenses can be significantly reduced, which is especially important as water rates and fees continue to rise.
Increase in Property Value: Lower operating expenses can boost Net Operating Income (NOI), leading to higher property valuations.
Remote Meter Reading: This feature enables remote monitoring and automated reading of meters, streamlining operations and allowing for quicker detection of issues.
Leak Detection: Rapid detection and resolution of leaks prevent extensive water wastage and financial losses.
Efficient Water Use: Detailed water usage data helps residents reduce waste and optimize their water consumption.
Accurate Billing: Ensures tenants are billed fairly based on their water usage, promoting transparency and accountability and fostering better relationships.
Data-Driven Decisions: Insights gained from the system support informed decisions about water policy and infrastructure improvements.
Conservation Incentives: State mandates and local incentives often encourage the adoption of water submetering solutions.
Environmental Benefits: Regular droughts and a growing population continuously strain water resources, making conservation a critical concern for everyone.

Key Steps to Prepare for Water Submetering in Colorado

Proper preparation is essential for water submetering in Colorado-

Compliance: Review local regulations and lease agreements to ensure submetering is permitted and understand any local benefits or restrictions.

Choosing a Provider: Select a reputable submetering company by considering their capability to handle monthly meter readings, maintenance, and long-term billing.

Installation: This phase involves installing the submeters, integrating usage data into the system, and preparing it for billing.

Informing Tenants: Provide tenants with ample notice about the new system and any changes to their billing. Clear communication helps ensure their understanding and cooperation.

Billing System: Whether implementing a new system or updating an existing one, the system must accurately bill tenants based on their monthly water use to ensure fairness and transparency in billing practices.

FAQs

What is Water Submetering?

Water submetering installs individual meters in each unit of a multi-unit complex, accurately tracking each tenant’s water usage. This system allows billing based on actual consumption rather than estimated use, promoting equitable and transparent utility practices.

How does water submetering benefit residents and property owners?

Submetering benefits residents by ensuring billing fairness, as charges reflect actual usage, encouraging water conservation. For property owners, it facilitates accurate utility cost recovery, reduces conflicts over water bills, and aids in the efficient management of water resources.

Is water submetering mandatory in Colorado?

Yes ,under Colorado House Bill 25-1090 (2025), individual water meters or submeters are now mandatory for all new multifamily, condominium, and mixed-use developments.

What are the initial steps to install water submeters in a property?

Initiating water submetering involves selecting a reliable provider, assessing the property to determine the best metering system, and engaging professionals for installation. It’s crucial to comply with local building codes and standards to ensure proper setup and functionality.

How are water usage charges calculated with submetering?

Charges are computed by recording the water consumption on each submeter and multiplying this by the prevailing water rate. This method ensures that each tenant’s bill accurately reflects their individual water usage, fostering transparency and accountability.

Who should I contact for maintenance or issues with my water submeter?

For maintenance or issues related to water submeters, tenants or property owners should contact the submetering service provider or their property management’s maintenance department.