Newport News and Williamsburg revise water supply agreement saving $12 million

During the Williamsburg City Council Work Session on May 5, 2025, a significant discussion centered around a revised project development agreement for long-term water supply between the City of Williamsburg and Newport News. This agreement is crucial as it addresses the city's water needs and financial commitments over the coming decades.

City officials, led by Mister Reid, outlined the history of the existing agreement, which dates back to February 2009. Initially, Williamsburg had an arrangement to purchase up to 2 million gallons of water per day from Newport News, with a total cost projected at $18 million. However, the city opted to forgo a substantial payment due in 2024, which would have reduced their water supply to 1 million gallons per day.

The newly proposed agreement, which extends from 2025 to 2050, allows Williamsburg to secure 1 million gallons of treated or untreated water daily, with an additional option to purchase 3 million gallons of treated water at an industrial rate of $4.29 per thousand gallons. Notably, this revised agreement eliminates any upfront costs, potentially saving the city upwards of $12 million. This financial relief is significant, especially as it alleviates concerns regarding water capacity for future development.

The council members expressed their approval of the new terms, recognizing the importance of understanding the city's infrastructure needs before committing to large financial obligations. The agreement not only secures a reliable water supply but also positions Williamsburg to accommodate future growth along the Newport News water line, should development opportunities arise.

In conclusion, the revised water supply agreement represents a strategic move for Williamsburg, ensuring both financial savings and adequate water resources for the future. As the city prepares to finalize this agreement, it underscores the importance of careful planning and negotiation in managing essential services for the community.