A Strategic Partnerships, Inc. ad for winning government contracts.
Mary Scott Nabers before a water faucet for her weekly column.

America’s aging water systems trigger a surge in billion-dollar fixes

April 22, 2026

Investments in wastewater and water treatment infrastructure across the United States are accelerating at an unprecedented pace. Federal data from the EPA indicates that more than $630 billion in water infrastructure improvements will be needed over the next two decades, with wastewater systems accounting for a significant share of that total.  

Much of this demand is driven by aging facilities, many of which were built more than 40 to 60 years ago and are now operating beyond their intended life cycles. At the same time, tightening regulatory standards for nutrient removal, increased climate-related risks, and population growth are forcing communities to modernize or replace outdated systems. An additional factor, weather related events are causing an immediate need for sustainability and other types of reconfigurations on systems in many parts of the U.S.  

The result is a surge of upcoming capital improvement projects as municipalities work to ensure compliance, resilience, and long-term reliability of essential water infrastructure. The following examples of water projects in current phases of facility studies represent various types of projects that will soon be seeking collaboration with private sector firms of all types.  

Officials of the village of Roselle, Illinois, are planning a $51 million expansion and nutrient removal upgrade at the Devlin Wastewater Treatment Plant. The work will address regulatory requirements, system capacity needs, and aging infrastructure. The project represents a major capital improvement to the village’s outdated wastewater treatment system.  

The scope of work will include a comprehensive upgrade of treatment processes and supporting infrastructure. Planned improvements include rehabilitation of the grit removal system, replacement of secondary clarifiers, and implementation of a biological nutrient removal process to improve phosphorus treatment performance. The work will also call for construction of a new chemical feed building and conversion from chlorine disinfection to ultraviolet disinfection. These upgrades are intended to enhance treatment efficiency, meet evolving regulatory standards, and support future growth within the service area.  

The project is included in Roselle’s Wastewater Facility Master Plan, which identifies the need for nutrient removal upgrades and plant expansion to maintain compliance and upgrade aging equipment. Earlier projections anticipated bidding in early 2026, but the schedule has since shifted, and no construction timeline has been finalized.  

Officials in the city of Frontenac, Kansas, are planning to launch a $21.2 million project that will deliver a new mechanical wastewater treatment facility to replace its existing system. The project is a major infrastructure upgrade driven by stricter nutrient discharge limits and compliance with environmental standards.  

The new facility will replace the city’s current lagoon-based treatment system, which officials say can no longer reliably meet state and federal standards for phosphorus and ammonia. The project scope includes construction of a modern mechanical treatment plant with upgraded pumping systems, controls, and monitoring technology designed to ensure consistent compliance and align with current discharge standards while supporting long-term system reliability.  

Currently, work is centered on design, financing, and preconstruction planning phases. Initial funding will come from the State Revolving Fund loan program, and the project is listed in the state’s 2026 funding plan. City updates indicate that some engineering, feasibility work, and site selection have been completed. A construction start date has not yet been publicly established.  

Kauai County officials are advancing an estimated $45 million project to revitalize the Wailua Wastewater Treatment Plant in Wailua, Hawaii. The existing plant has been in operation for more than 60 years and lacks the infrastructure and upgrades needed to adequately serve the region’s population.  

The scope of work includes updating key treatment components such as clarifiers, filters, aeration basins, and the chlorine contact tank. Additional improvements include new effluent filters, an on-site disinfectant generation system, electrical upgrades, and site work. The project will also construct new headworks and primary filters, reuse existing basins for additional treatment capacity, and improve solids handling, storage, and transport processes.  

Beyond wastewater treatment upgrades, the project includes rehabilitation of the recycled water system, including a force main used for irrigation, and modifications to the ocean outfall to improve discharge performance. Because the facility is located in a tsunami zone, resilience to extreme weather events is a key factor influencing design decisions. Construction is expected to follow completion of design and engineering, with solicitations anticipated by mid-2026.  

Town officials in Wiscasset, Maine, are advancing a $40 million wastewater infrastructure project that will relocate an existing treatment facility from Cow Island, located in a floodplain, to a new site outside the floodplain. The relocation is intended to improve long-term system resilience, reduce flood risk exposure, and replace aging infrastructure with a more secure and reliable facility.  

The project includes construction of a new wastewater treatment plant at the replacement site, along with a main pump station and force main as part of the initial phase. The broader program also includes relocating the public works garage and sand shed to allow for development of the new treatment facility. Additional work will include site preparation and enabling infrastructure to support wastewater operations. Later phases are expected to incorporate expanded treatment, utility, and support systems needed to fully transition operations. The project remains in funding and phased planning stages, with construction expected to begin in 2027.  

Officials in Yreka, California, will oversee a $28 million project to modernize a wastewater treatment plant. This publicly led effort will focus on treatment, disposal, and monitoring systems and is included in California’s Clean Water State Revolving Fund list for funding.  
The planned work includes headworks upgrades, replacement of surface aerators and diffusers, secondary clarifier improvements, electrical and fiber optic upgrades, control building enhancements, a new disinfection facility, a new filtration building, sludge dewatering systems, lift station improvements, and SCADA upgrades. The scope reflects a comprehensive effort to modernize equipment, strengthen system controls, improve treatment reliability, and enhance supporting infrastructure across the wastewater network.  

The project is currently in environmental approval and funding programming stages. Procurement will follow, and construction is scheduled for 2028.  

Taken together, these projects point to a nationwide shift from reactive maintenance to proactive modernization and major upgrades of water infrastructure in America. Communities are no longer able to defer investment as regulatory expectations tighten and system failures become more costly. The growing pipeline of wastewater treatment upgrades reflects not only compliance requirements, but also a broader commitment to sustainability, resilience, and public health. For industry stakeholders, the volume and urgency of these projects signal sustained opportunities in planning, engineering, construction, and technology deployment for years to come. 


Photo by Canva

For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.

Mary Scott Nabers

Mary is President/CEO of Strategic Partnerships, Inc. (SPI), a business development/public affairs firm that specializes in procurement consulting, market research, government affairs, knowledge transfer and public-private partnerships (P3s). Mary is also co-founder of the Gemini Global Group (G3), a firm that works with national and international clients on business development, P3s, and other types of government objectives.

A recognized expert regarding P3s, Mary is the author of Collaboration Nation – How Public-Private Ventures Are Revolutionizing the Business of Government and Inside the Infrastructure Revolution – A Roadmap for Rebuilding America.

Don't Miss

Massive support, funding now available to improve supply-chain networks

New opportunities for multimodal freight, rail, and port projects are

New hospitals greenlit for Amarillo, Wichita Falls

The Texas Health and Human Services Commission (HHSC) is searching