March 5, 2025

Forging a Resilient Water Future: Insights and Innovations from SWIS

Last week’s Sustainable Water Investment Summit (SWIS) gathered public officials, investors, industry experts, and technology leaders to explore the future of water infrastructure, finance, and innovation in today’s era of water reallocation. Over two days of panel discussions and networking in Southern California, participants identified critical challenges and opportunities shaping the water sector:

Affordability & Financing: Utilities face mounting pressure to fund new projects while keeping rates manageable. Smaller systems are especially vulnerable, amplifying the need for both transparency and innovative funding models (e.g., private-public partnerships) to address infrastructure gaps.
Localized Agricultural Realities: Climate shifts and new regulatory landscapes require farmers and investors to understand local water agency dynamics and the ripple effects of land and water management decisions. Water is increasingly viewed as both an essential input and a tradable commodity.
Growing Role of Private Capital: As public-sector resources tighten; private investors are stepping in to finance emerging solutions—from water reuse technologies to brackish groundwater treatment. Aligning these investments with a risk-averse public sector requires clear policy frameworks and patient capital.
Federal Policy Shifts: Greater federal scrutiny of Western water and fluctuating budgets introduce uncertainty but also offer a potential bipartisan foothold for unifying policymakers around pressing infrastructure and drought resilience measures.

These themes highlight a sector in transition, balancing the critical need for investment against the realities of climate change, affordability, and regulatory complexity. For water managers, policymakers, and investors, the big takeaway is clear: progress requires partnership, prudent financing, and sustained community engagement.

PANEL SUMMARIES

Navigating Change: Water Challenges and the New Administration

Key Takeaways

Increased Federal Engagement: Greater scrutiny on Western water issues, particularly in California’s Delta and the Colorado River Basin.
Budgetary Uncertainty: Federal cuts could stall large-scale projects and water-related grants, compounding drought management challenges.
Bipartisan Possibility: Water stands as one of the few issues that can unite policymakers across the aisle. There is plenty of reason to remain optimistic and hopeful about the future of water.

Why It Matters
Federal policy shapes environmental permitting, interstate water compacts, and funding streams. States and local agencies must stay agile to adapt to shifting guidelines and priorities.

Insights
We’re transitioning away from massive federal water projects and into a more flexible era of reallocation and targeted infrastructure, but when agencies face budget cuts, approvals and oversight capacity also dwindle.

“Liquid Asset” Interview and Q&A with Author Barton “Buzz” H. Thompson, Jr.

Key Takeaways

Market-Based Solutions: Thompson underlined the role of private-sector tools—like water marketing and reallocation—to maximize efficiency.
Public–Private Partnerships: Highlighted the necessity for collaboration between government agencies and private investors to spark innovation.
Communicating Value: Water is undervalued. Clear public messaging about the benefits of secure water supplies can foster support for investment.

Why It Matters
Encouraging a market-based viewpoint can introduce financial discipline and innovation into what has traditionally been a public-sector domain. The opportunity (and need) for the private and public sector to come together has never been stronger.

Insights
We often underestimate water’s economic value. By pricing it correctly and communicating benefits transparently, we can drive more sustainable use and investment.

The Value of Water: A Global Perspective

Key Takeaways

Water Scarcity Is Universal: A global look underscores that distribution, not absolute quantity, is often the real challenge.
Positive Externalities: Investing in water yields significant returns—monetary, environmental, and social.
Need for Education: Many communities fail to appreciate infrastructure or water’s true cost until crises hit.

Why It Matters
Global perspectives show how advanced technologies (e.g., desalination, reuse) can be adapted to local conditions—an essential insight as climate change intensifies hydrologic variability.

Insights
Every dollar invested in water infrastructure can generate multiple dollars in value—whether in public health, economic resilience, or environmental protection.

Building a Resilient Water Infrastructure Future

Key Takeaways

Infrastructure Funding Gap: Public resources alone can’t cover the growing need; private investment will be critical.
Conservation First: Existing supplies remain the cheapest option—optimizing and extending current resources is essential before building anew.
Exploring Brackish Groundwater: A high-potential avenue for expanding supply if treated efficiently.

Why It Matters
Population growth and climate variability strain older systems. Public-private partnerships (P3s) can expedite project timelines but must be structured to address community concerns over affordability and control.

Insights
The era of big publicly financed projects is over. We need smaller, targeted infrastructure solutions alongside innovative funding arrangements.

Securing Our Water Future: Public Investment in Infrastructure and Supply

Key Takeaways

Municipal Bonds & Beyond: Public agencies rely heavily on bonds, but supplemental funding—grants, federal programs, and private investments—remains crucial.
Affordability Challenges: Rate structures must evolve to reflect true costs while protecting low-income residents.
Policy & Innovation: State-level regulations can either spur or stifle new water supply projects; collaboration is key.

Why It Matters
Reliable public funding underpins water security, but many utilities face budget shortfalls, aging infrastructure, and an urgent need to meet higher environmental standards.

Insights
Communities can’t afford not to invest in water. Long-term resilience outweighs the short-term political hurdles that often block vital infrastructure improvements.

Telling Our Story: Articulating the Unique Opportunities in Water Investments

Key Takeaways

Under-Told Story: Despite rising global awareness, water remains underrepresented in mainstream investment discussions.
Beyond Profit: Investors increasingly seek social and environmental returns—making water projects attractive if framed well.
Compelling Messaging: Technical jargon often alienates the public. Storytelling with tangible impacts resonates more effectively.

Why It Matters
Bridging the communication gap can unlock new capital from impact investors, philanthropists, and traditional funds eager to include sustainable assets in their portfolios.

Insights
The water narrative must highlight societal and financial benefits in concrete terms—better health outcomes, resilient ecosystems, and community well-being.

Developing Resilient Water Supplies in an Era of Scarcity

Key Takeaways

Diverse Supply Portfolios: In addition to conservation, leveraging groundwater, treated wastewater, and desalinated sources can mitigate scarcity.
Tailored Solutions: Projects must align with local geological, political, and economic conditions to gain traction.
Private Sector Role: Private capital can drive creative solutions—like water banking—where public agencies are constrained.

Why It Matters
Climate extremes demand flexible strategies. Without diversified approaches, regions face higher vulnerability to droughts, floods, and population growth pressures.

Insights
One size fits no one. Each project must be nimble enough to adapt to local needs, funding realities, and community acceptance.

Drought to Deluge: Water Risk Management and Agriculture

Key Takeaways

Local Insight is Paramount: Understanding regional water agencies, neighbor relations, and microclimates is critical for successful farm operations.
Shared Consequences: Agricultural water decisions have “ripple effects” across entire watersheds, reinforcing the need for collective action and agreements.
Water as an Asset: For some growers, water has become a product in itself—transferable and monetizable in times of scarcity.

Why It Matters
Agriculture sits at the crossroads of affordability, quality, and reliability. Inefficient or inequitable water practices can destabilize regional economies and food supplies.

Insights
Farmers increasingly recognize that sustainable water management is as important as crop yield itself—both factors are intertwined in long-term profitability.

Building a Brighter Future: Municipal Bonds and Water Security

Key Takeaways

Affordability vs. Major Capital Projects: Ratepayer concerns clash with the need to finance large-scale upgrades.
Small Systems at Higher Risk: Smaller utilities face more pronounced challenges if tax-exempt bond statuses change or if credit downgrades persist.
Climate & Environmental Disclosures: Investors now demand transparency about climate vulnerabilities, pushing utilities to adopt more robust risk management plans.

Why It Matters
Municipal bonds are foundational to U.S. water infrastructure. Any shift—be it in tax policy or investor expectations—can impact the affordability and feasibility of crucial projects.

Insights
Aging infrastructure plus inflation means utilities need to justify large investments carefully, especially under tighter scrutiny from rating agencies and ratepayers alike.

Driving Innovation: Investing in Water Tech

Key Takeaways

Patient Capital Needed: Water tech typically involves extended pilot programs and regulatory approvals, extending the timeline to market.
Economic Drivers Outweigh Regulation: While regulations matter, cost-effectiveness and scalability often spur adoption.
Emerging Opportunities: AI-based water management, groundwater recharge, and wastewater treatment are attracting both traditional VC funds and corporate investors.

Why It Matters
Innovation drives down costs and improves resource reliability. But entrepreneurs must navigate a heavily regulated arena and prove tangible benefits to water utilities and end users.

Insights
Water tech investment is expanding. This is in large part due to the capital ecosystem that supports it – non-dilutive funding, accelerators and incubators, VC/PE, and more.

Corporate Water Stewardship and Risk

Key Takeaways

Material & Reputational Risks: Water scarcity can disrupt operations and tarnish brand image if not managed responsibly.
Localized Solutions: Water issues vary widely by region; one-size-fits-all stewardship strategies often fail.
From Boardroom to Community: Effective corporate stewardship involves building trust with local stakeholders, ensuring mutual benefits for both the company and the region.

Why It Matters
Companies increasingly factor water security into long-term strategies. A lack of proactive stewardship could threaten supply chains, community relations, and bottom lines.

Insights
Corporate water initiatives must demonstrate real impact, not just serve as PR. Long-term credibility depends on tangible outcomes that benefit local communities.

SWIS 2025 PHOTO GALLERY

Final Word from WestWater

These panels collectively underscore the urgency and complexity of water’s future, from the intricacies of federal funding to technological breakthroughs and community-centric leadership. With affordability and resilience taking center stage, public–private collaboration, tailored solutions, and transparent storytelling will shape how we adapt to the challenges—and opportunities—on the horizon. This year’s summit also featured the inaugural Women’s Affinity Breakfast featuring Woodard & Curran CEO Alyson Watson.

WestWater Research is proud to play a role in bridging economics, policy, and on-the-ground realities—helping stakeholders navigate the complexities of water investments and infrastructure. We look forward to collaborating with partners across the public and private sectors to address the urgent needs illuminated at this year’s SWIS and shape a more resilient water future.

We would like to thank our co-hosts Brownstein and all the sponsors that made this summit possible:

SAVE THE DATE: We’re excited to announce our return to Terranea Resort for our fourth Sustainable Water Investment Summit on March 5-6, 2026. Early bird registration opens on Earth Day, Tuesday, April 22, 2025.

For more information on WestWater Research or any of the topics discussed at SWIS, please reach out to our CEO Clay Landry or our COO Chris Smith.