Explore five water and wastewater infrastructure options to help developers secure treatment capacity, manage costs, and keep projects on schedule
A developer may have identified the right property, secured financing, and made significant progress through the approval process, only to discover that adequate water and wastewater capacity isn’t available. Choosing the right solution early in the planning process is therefore essential. Securing sufficient infrastructure early can also give developers a competitive edge in markets where water capacity is increasingly influencing development decisions.
Waiting for the local utility to extend its services is one option, but it isn’t the only one. Developers building beyond an existing utility’s service area may need to consider alternative ways to secure water and wastewater service. This decision guide explores the available approaches, from extending existing utility infrastructure to building and owning an onsite treatment plant. It also examines alternatives such as decentralized treatment, leased treatment systems, and other temporary solutions, as well as partnering with a professional third-party water or wastewater service provider.
These options aren’t necessarily mutually exclusive. Decentralized treatment describes where infrastructure is located, while approaches such as developer ownership, leasing, and Water-as-a-Service® determine how that infrastructure is financed, owned, and operated. A development might use a decentralized treatment plant under any of these arrangements. Understanding that distinction can help developers evaluate combinations of solutions rather than treating each option as a separate path.
In This Article
Option 1: Extend or Expand the Existing Utility System
If a water or wastewater treatment plant is nearby, connecting to the local utility may offer the simplest long-term solution, provided the system has sufficient capacity to serve the development. Depending on the location and existing infrastructure, this may involve extending water and sewer lines, installing lift stations, upgrading transmission infrastructure, or expanding treatment capacity to accommodate the additional demand. Before choosing this approach, developers need to establish who will cover the costs. While the utility may fund some improvements, it may require the developer to pay for line extensions or contribute to infrastructure upgrades.
Developers should also request confirmation of available capacity, connection requirements, associated fees, and the utility’s expected service timeline.
One of the biggest drawbacks of relying on utility expansions is the time involved. Utility schedules may not align with development timelines, and pipeline extensions and capacity expansions can take months or even years, depending on project scope, approvals, funding, and the utility’s schedule. In some cases, the challenge isn’t the distance from existing infrastructure but insufficient water supply or treatment capacity. Under these circumstances, extending the network may not resolve the problem, and developers may need to consider alternative solutions.
Option 2: Build and Own the Treatment Infrastructure
When a centralized water or wastewater treatment plant is unavailable, or connecting to an existing facility is impractical, developers can build and own an onsite treatment plant. While this gives developers greater control over the infrastructure, they must also establish how the plant will be operated, maintained, and managed over the long term.
A developer-owned plant may make sense when utility services are unavailable, too far away, or unable to provide sufficient capacity. It can also provide a practical option for developments that will be built in phases, allowing treatment capacity to grow as new homes are completed.
However, building a treatment plant requires significant upfront capital investment, along with the necessary permits and regulatory approvals. Developers also assume responsibility for staffing, maintenance, repairs, regulatory compliance, and long-term asset management, whether they handle these functions internally or contract them out.
Finally, developers should consider their long-term ownership goals and what will happen to the plant once the development reaches full buildout. Transferring ownership and responsibility to a local utility, district, or other entity may be an option in the future, but these arrangements should be established early in the planning process.
Option 3: Consider Decentralized Treatment Infrastructure
Decentralized water and wastewater systems provide treatment capacity closer to the point of use, reducing the need to connect to centralized facilities located some distance away. Decentralized treatment can be developer-owned, leased, or delivered through a third-party service agreement, depending on the project’s financial and operational requirements. Depending on site conditions and permitting requirements, decentralized systems may shorten development timelines by reducing the need for extensive conveyance infrastructure. This option is particularly beneficial for developments outside existing service areas, including rural or remote locations.
These systems can be designed to scale, allowing developers to start with a smaller system rather than investing in the full treatment capacity required at buildout upfront. Treating water and wastewater onsite can also create opportunities for water reuse.
Before choosing this option, developers should assess land requirements and determine whether there is sufficient space available to accommodate a treatment plant. They should also consider the permitting requirements, discharge limits, and the feasibility of onsite water reuse. Finally, they should evaluate ongoing operational and maintenance (O&M) needs, including monitoring and regulatory compliance, to ensure the system can perform reliably over the long term.
Option 4: Lease Capacity or Use an Interim Treatment Plant
For some projects, the main challenge is timing. A permanent treatment plant may still be in the design, permitting, or construction stage, or a utility extension may be planned but will take time to complete. Meanwhile, developers may need treatment capacity sooner to keep construction and occupancy on schedule. Interim capacity can also support the early phases of a development when building permanent infrastructure for the entire project is not yet financially or practically feasible.
In these situations, leased or temporary treatment systems can bridge the gap until permanent infrastructure is available. However, interim solutions still require the necessary permits and regulatory approvals, as well as an operating plan and a clear transition strategy for when permanent treatment capacity comes online.
Seven Seas Water Group’s Lease Plant Program provides modular water and wastewater treatment systems for temporary capacity needs, phased developments, and projects awaiting permanent infrastructure. Leasing allows developers to access treatment capacity without the upfront capital investment of purchasing a plant, while retaining flexibility as project requirements change. Under the standard leasing model, the customer is responsible for operations and maintenance, which may be managed internally or through a contracted operator.
How Developers Have Used Leased Treatment Plants
Harris County, Texas: A five-year lease arrangement supported four stages of wastewater treatment capacity expansion, from 75,000 to 600,000 gallons per day, as development progressed. This allowed the community to add treatment capacity without investing in the full buildout capacity at the outset.
Hunt County, Texas: A 155,000-gallon-per-day temporary wastewater treatment plant provided capacity while a permanent facility was under construction. The system was operational within three months, allowing development to continue while the permanent infrastructure was completed.
Option 5: Use a Third-Party Utility or Water-as-a-Service® Model
Another option is to partner with a third-party provider that finances, builds, owns, operates, and maintains treatment infrastructure under a long-term service agreement. Seven Seas Water Group’s Water-as-a-Service® (WaaS®) model offers this approach, allowing developers to secure treatment capacity without owning or operating the plant. Depending on the agreement, capacity can expand as the development grows. Permitting and compliance responsibilities depend on applicable regulations and contract terms.
Unlike a traditional equipment lease, a WaaS® agreement combines infrastructure development with ongoing operations and maintenance. This gives developers an alternative to financing and managing their own treatment assets while establishing a long-term arrangement for the water or wastewater service their communities need.
How Do You Decide Which Option Fits the Development?
If the local utility has enough capacity and can connect the development on schedule, extending its system may be the most straightforward option. If the infrastructure won’t be ready when the first homes need service, a leased or interim plant may provide a bridge. For developments outside established service areas, decentralized treatment may be more practical than extending miles of pipeline. The next question is ownership: Does the developer want to finance and manage that infrastructure, or would a third-party service arrangement make more sense?
Questions to Answer Before Choosing an Infrastructure Approach
Before committing to a water or wastewater solution, developers should evaluate several factors:
- Available capacity: Can the local utility confirm sufficient capacity for initial occupancy and future buildout?
- Project timeline: When must service be available, and can the proposed infrastructure meet that deadline?
- Upfront investment: How much capital is available for utility infrastructure, and what other development priorities would that investment affect?
- Long-term responsibility: Who will own, operate, and maintain the system once the development reaches full buildout?
- Future growth: Can treatment capacity be expanded as additional phases are constructed without major service disruptions?
Answering these questions can help narrow the available options before evaluating specific technologies, financing arrangements, and service providers.
Comparison Table:
| Infrastructure Approach or Delivery Model | Upfront Developer Capital | Developer Owns Asset | Typical O&M Responsibility | Main Trade-Off | Best Fit |
| Utility extension | Varies, depending on the project structure | No | Local utility, subject to service arrangement | Potential dependence on utility capacity and schedules | Utility has capacity and timing aligns with project timelines |
| Developer-owned plant | High | Yes | Developer or contracted operator | Upfront investment and long-term asset responsibility | Developer wants infrastructure control |
| Decentralized treatment | Depends on ownership model | Depends on ownership model | Depends on service arrangement | Site, permitting, discharge, and operational requirements | Developments where centralized service is unavailable or impractical |
| Lease/interim plant | Lower | Usually no; varies by arrangement | Customer or contracted operator under standard lease | Transition planning and temporary operating costs | Temporary capacity needs or phased development |
| WaaS®/third-party utility | Lower to none, depending on structure | No | Service provider, subject to agreement | Long-term service agreement and contractual commitments | Long-term service without plant ownership |
Decentralized treatment is an infrastructure approach rather than a financing or ownership model. It can be combined with developer ownership, leasing, or WaaS®, depending on the project’s needs.
Note: The comparison above is indicative, and actual arrangements will depend on the individual contract and jurisdiction.
The right infrastructure solution starts with identifying what’s holding the development back: utility availability, treatment capacity, timing, financing, or long-term ownership requirements. Once those constraints are clear, developers can evaluate which approach provides the capacity they need now and as the project grows.
Explore Your Development’s Water and Wastewater Options
Seven Seas Water Group helps developers secure reliable water and wastewater treatment capacity to support project timelines and future growth. Contact our team to discuss your development’s requirements and explore the right solution for your project.