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Hyde Park Tightens Water-Right Rules for New Development, Eliminates Fee-in-Lieu Option
Summary
Council adopted an amendment requiring developers to provide water rights for new connections and removed the fee-in-lieu option, citing concerns that city water rights could be exhausted within years if current practices continue.
Hyde Park — The city council unanimously adopted an amendment Dec. 10 to require developers to supply water rights when applying for new connections, removing the option to pay a fee in lieu that had allowed the city to source rights on developers’ behalf.
Staff explained that rapid growth and a pattern of developers paying fees in lieu of providing water rights have depleted municipal reserves. "If we keep going the way we're going, we estimate we probably only have 5 to 7 years left of water rights," Marcus told the council, arguing the change shifts the due diligence to developers and preserves city water for long-term needs.
The ordinance amends Hyde Park Municipal Code (HPMC) sections 12.150.010 and 12.150.020 to require that preliminary plats and site-plan applications include documentation of how many water rights will be provided and their type. The update also allows the city to require developers to transfer water rights into the city's name with the Division of Water Rights if necessary.
Council discussed that the city maintains a 50-year infrastructure outlook but that the specific 40-year water-rights plan the state recommends was updated as part of the 2023 water master plan. Council members criticized using city staff time to locate water rights for developers and supported returning that responsibility to applicants.
Councilmember Dave moved to adopt Ordinance 2025-24 and Stephanie seconded; the council approved the change 3-0.
Staff said the amendment applies to residential and nonresidential development (calculated via equivalent residential units for commercial uses) and that applications already submitted under the previous rules retain their earlier option.
