Please ensure Javascript is enabled for purposes of website accessibility

The Crisis Beneath Us: Michigan’s Water Infrastructure

September 24, 2026

Much of Michigan’s water infrastructure was built in the first half of the 20th century and is now reaching or exceeding the end of its useful life. PSC staffed the Water Funding Task Force, convened by the Great Lakes Water Authority, to identify sustainable, long-term revenue sources that can provide Michigan water utilities with the state resources necessary to address this crisis. Our report documents WFTF’s work and recommendations for raising the billions of dollars needed to replace or maintain aging infrastructure. 

Download Full Analysis

The Path Forward

Michigan faces an $85 billion water infrastructure gap, and local rates alone can’t close it. Our new report lays out three paths forward:

Issuing New State Debt

Michigan has more borrowing capacity than you might think. The report explores how bonds could spread the cost of long-lasting infrastructure across the generations who benefit from it, and what it would take to get there.

Annual Pay-As-You-Go Funding

Skipping debt means skipping interest, but is it really cheaper? The report weighs the tradeoffs when construction costs keep climbing.

Dedicated Revenue Sources

From familiar ideas to ones Michigan has never tried, the report sizes up nearly a dozen ways to generate funding and how much each could raise.

Every option comes with tradeoffs. Download the full report to see how they stack up.