If you live in a multifamily community in California, Colorado, Texas, or another state that uses utility submetering, you may be wondering how to understand your water bill—or why it looks different than bills you’ve received in the past.
This guide breaks down how to read a submetered water bill, explains common line items like base rates, usage charges, and sewer fees, and clears up common misconceptions about smart meters and billing increases.
What Is a Submetered Water Bill?
A submetered water bill shows your individual share of your community’s total water usage, rather than splitting one large bill evenly among all residents.
Here’s How Submetered Utility Billing Works:
- Your local utility provider supplies water to the entire community.
- The community receives a master utility bill.
- MeterNet installs individual water submeters for each home.
- MeterNet reads those submeters, prepares resident statements, and collects payments.
- Collected payments are reimbursed back to the community to pay the master utility bill.
This process ensures residents only pay for their own usage, not their neighbors’ or shared common areas like irrigation, pools, or laundry rooms. In short: submetering creates a fair, transparent multifamily utility bill based on actual consumption.
The 3 Main Sections of a Water Bill Explained
Most water bills—whether submetered or not—include three main types of charges. MeterNet statements are designed to mirror your community’s actual utility bill line for line, with no markups or added charges.
In the video below, Dave Leubke, Director of Client Services at MeterNet, explains how our submetered utility statements work.
1. Base Rate: What Is the Base Fee on a Water Bill?
A base rate (sometimes called a base fee) is a flat monthly charge applied by most water and sewer utilities.
What does the base rate mean in your water bill?
- It covers the cost of being connected to the water system.
- It helps maintain pipes, infrastructure, and system operations.
- It is charged even if no water is used.
💡 Even if you turned off all your water for the month, the base fee would still apply.
Many utility companies charge:
- A water base rate
- A sewer base rate
2. Usage Rate: Understanding Your Water Usage
Your usage rate is the part of the bill that changes month to month.
This charge is based on:
- How much water you used (for example: showers, cooking, doing dishes, in-unit laundry, watering plants, and other daily household use)
- A price per gallon or per hundred cubic feet (HCF)
Tiered Water Usage Rates
Some utility companies use tiered water usage rates, meaning:
- Lower usage is billed at a lower rate
- Higher usage falls into higher-priced tiers
“For example, one to 100 gallons is one price per gallon, and then 101 gallons to 200 gallons is another price—this is called tiering. Tier one would be the lower price, tier two is the next price up, and then usually some have a third tier, where 201 gallons to infinity is the third tier, the higher price.”—Dave Leubke
This structure encourages conservation and explains why bills may increase during high-use months.
3. Other Charges: Sewer, Fire Protection & More
Depending on your local utility provider, you may also see additional line items, such as:
- Sewer Charges Based on Water Usage
Utility companies often assume the water you use goes back down the drain, so sewer charges are typically calculated using the same usage amount. As mentioned above, most water providers have a sewer base rate. - Fire Service or Fire Protection Fees
Some water companies include a fire protection or fire service fee to help fund fire hydrants, emergency water access, and system readiness for firefighting. - Trash or Other Infrastructure Fees
Your bill may also include charges for trash service or additional services offered by your community’s water service provider.
These charges are set by the utility company, not MeterNet, and vary by location.
Why Submetered Billing Is Fairer for Residents
“If water isn’t submetered and your neighbor leaves their shower on all day long everybody pays for that one neighbor using a ton of water. If a neighbor is brewing beer in their basement, everybody’s paying for that beer being brewed. Once submetering comes in it’s a fair service. So if you’re brewing beer, you should be paying for that beer you’re brewing, and if you’re really conscientious and saving water as much as you can, you should be rewarded for that.”—Dave Leubke
Without submeters, many communities split water costs evenly—regardless of usage. This often means low-use residents subsidize high-use neighbors.
With submetering:
- Common-area water use is covered by the community
- Residents pay only for their individual usage
- Billing is pro rata, based on actual consumption
This results in:
- More predictable bills
- Fewer disputes
- Stronger incentives to conserve water
Does MeterNet Increase Water Bills or Add Markups?
No. MeterNet does not upcharge residents or increase utility rates.
Every line item on your MeterNet water bill:
- Matches the community’s utility bill
- Reflects your share of usage
- Uses exact utility rates, one-to-one
MeterNet’s role is to read meters, prepare statements, and handle billing, not to inflate costs.
Are Smart Meters Causing Higher Bills?
This is a common concern—and the answer is no. Smart meters do not increase water usage or rates. Instead, they:
- Measure usage more accurately
- Detect leaks earlier
- Reduce billing errors
Many residents are used to communities dividing a single water bill equally among all households or using a RUBS (Ratio Utility Billing System) based on square footage. With submetering, your bill reflects your actual usage, which may be higher for some households, such as larger families or those with higher water consumption. At the same time, households that were previously subsidizing high-usage neighbors often see a decrease in their water bills.
If a bill seems higher than expected, it’s often due to:
- Increased usage
- Seasonal rate changes from your local utility provider
- Undetected leaks
Accurate meters help reveal these issues sooner—before they become costly problems. If questions remain, MeterNet’s customer support team can help review your statement.
What Is the MeterNet Service Fee?
Although MeterNet does not mark up your water rates or increase what your utility provider charges, we do charge a small monthly service fee. This fee covers everything needed to provide accurate, transparent submeter billing, including:
- Meter reading
- Billing and statement preparation
- Matching utility rates
- Customer support
- Ongoing meter maintenance
Even with this service fee, most residents see significant savings compared to traditional single-meter systems. In typical multifamily communities, about 50–75% of water usage is consumed by just 25% of residents, meaning many households were previously overpaying for water. Once submeters are installed, most residents experience a 30–40% reduction in their personal water costs, while overall community water consumption often drops by about 25% within the first year.
How to Pay Your MeterNet Water Bill
MeterNet offers multiple secure, convenient payment options, including:
- FREE automatic ACH payments
- Online or over-the-phone credit card payments
- E-check payments
- Mailed check or money order
- Bank bill pay services
Visit our online payment portal for more information. Payment due dates and late fee policies vary by community, so always refer to your statement for specifics.
Still Have Questions About Your Water Bill?
If your community uses MeterNet, our team is here to help. Residents can contact MeterNet directly with billing questions—no need to go through your HOA or property manager.
Understanding your water bill doesn’t have to be complicated. With submetered utility billing, residents gain clarity, fairness, and confidence in what they’re paying—and why.