Detroit, Suburbs Reach Historic Water Deal

Detroit and Macomb, Oakland and Wayne counties have reached an historic $2 billion accord that for a regional water authority that will provide $50 million annually for system upgrades over the next 40 years.

The agreement comes after months of skirmishes and suspicion among officials in Detroit and the three metropolitan counties, the Detroit Free Press and The Detroit News are reporting. Among suburban officials’ primary objections was suspicion that the proposed water authority was a tool to help Detroit avoid bigger pension cuts in its plan to exit bankruptcy.

Under the terms of the agreement, Detroit Water and Sewerage Department will transfer its regional assets to the new Great Lakes Water Authority, while maintaining responsibility for pipes and plants inside the Detroit city limits. The regional authority will be responsible for assets outside the city limits.

The deal means water rates will increase 4 for each of the first 10 years. Detroit will get $4.5 million annually to help low-income residents who can’t pay their water bills.

Over the course of the 40-year agreement, $500 million to $800 million in system upgrades will be completed.