Articles & Blogs

Across North America, much of today’s water and wastewater infrastructure was built more than half a century ago, designed for smaller populations, lighter regulations and a milder climate. These legacy systems are now struggling under modern realities: rapid growth, extreme weather and tightening water quality standards.

Aging pipes, treatment plants and equipment nearing the end of their lifespan are driving up repair costs, leaks and service disruptions. According to the American Society of Civil Engineers (ASCE) 2025 Infrastructure Report Card, U.S. drinking water systems earned a “C—” and wastewater systems a “D+”, underscoring the urgent need for modernization. Canada faces a similar strain: nearly one in five kilometers of underground water and sewer mains were built before 1970, with many treatment facilities operating well beyond their design life.

Across both nations, infrastructure is deteriorating faster than it can be replaced. Leaks and breaks are increasingly common, with municipal systems losing 14-18% of treated water daily and in some regions, losses exceed 60%. The Environmental Protection Agency (EPA) estimates that maintaining and upgrading U.S. water and wastewater systems will require more than USD $630 billion over the next two decades.

These issues extend beyond just mere inconvenience, driving up costs, operational risks and regulatory exposure. By investing strategically and leveraging data-driven asset management, utilities can shift from reactive fixes to proactive resilience and sustainability.

Investing Smarter: Building Resilient Water Systems

Modernizing infrastructure isn’t about spending more; it’s about spending smarter. Data-driven capital planning helps cities target the most critical projects, extend asset life and boost reliability. According to McKinsey’s Water Resilience Report, targeted investments and efficiency improvements could close up to 45% of the sector’s USD $110 billion funding gap without new legislation.

By pairing risk assessments and climate forecasts with digital asset management, municipalities can prioritize upgrades that deliver measurable ROI. Smart sensors, predictive analytics and cloud dashboards help utilities detect issues early, optimize maintenance and ensure regulatory compliance, all while improving transparency and public trust.

Public-private partnerships (PPPs) can also accelerate progress by sharing risk and leveraging private expertise, helping cities such as San Antonio and Washington, D.C., modernize faster and at a lower lifecycle cost. As environmental and cybersecurity standards tighten (from PFAS limits to CISA’s cyber hygiene guidelines) strong governance and digital readiness are essential to protect infrastructure and public health.

A phased roadmap helps utilities start strong:

• • Assessment & Prioritization: Conduct thorough audits and risk assessments to identify critical areas for improvement.
  • Capture Quick Wins: Implement projects that deliver immediate benefits, such as leak detections and smart metering.
  • Engage Stakeholders: Align internal teams and engage with the community and regulators to build consensus.
  • Diversify Funding: Secure diverse funding sources to support modernization projects.
  • Plan for Scalability: Ensure that modernization efforts are sustainable and scalable for long-term benefits.

Leadership Starts with Action

Every drop counts and so does every decision. Through smarter investments, modern technologies and collaborative partnerships, utilities can safeguard reliable, safe and sustainable water systems for generations to come.

Learn more about Hexagon’s solutions for water and wastewater modernization.