Water & Wastewater Operations

Water Development in a Water-Parched Region

Pure Cycle is a vertically integrated water and wastewater resource development company. We own or control a portfolio of water rights that includes 29,500 acre-feet of groundwater and surface water and 26,000 acre-feet of adjudicated reservoir sites. As a vertically integrated company, we also own and manage a full ecosystem of facilities needed to withdraw, store, treat, deliver and collect water and wastewater. Our goal is to provide sustainable, high-quality water to our customers and make prudent use of reclaimed water for outdoor irrigation and industrial demands.

Our Competitive Edge

Our water supplies and wholesale facilities are located in southeast Denver, an area with limited water and water infrastructure. We believe this provides us with a unique competitive advantage as our water is sourced near our customers. We provide wholesale water and wastewater service to local governments, including the Rangeview District, Arapahoe County, the Sky Ranch CAB, and Elbert 86 District.

In addition, we also design, permit and construct wholesale water and wastewater systems for governmental and non-governmental entities. We take care of administrative functions such as meter reading, billing and collection of monthly water and wastewater revenues, regulatory water quality monitoring, sampling, testing, and reporting requirements to the Colorado Department of Public Health and Environment.

Projected Growth of Recurring Revenue

Our projected utility customer growth includes both existing and new residential and commercial customers.

Infrastructure to Meet Current and Future Demand

Our Water Reclamation Plant Uses the Latest Green Technology
  • $10 million, state-of-the-art water reclamation facility completed in February 2020
  • Capacity to serve 2,000 single-family homes, with the ability to expand to serve more than 5,000 connections
  • Dispenses highly treated reclaimed water for irrigation and other uses
  • Active odor control technology
  • The green roof covers 90% of the main plant

Tap Fees and Ongoing Utility Services

Tap Fees

The utility segment provides two revenue streams, primarily driven by Tap Fees and Usage Fees. Tap Fees represent one-time system development fees that homebuilders pay, typically at the point of acquiring a building permit. These fees defray the costs associated with acquiring water rights and constructing wholesale water and wastewater facilities. In the Denver area, Tap Fees have experienced consistent increases, surpassing inflation rates and are largely attributed to the growing scarcity value of water and the heightened competition for water rights.

To ensure competitive lot pricing and to align with our commitment to responsible water management, we employ a "Water Budget" methodology. This approach involves calculating the anticipated water demand for each lot, taking into account various factors such as lot size, house dimensions, impervious area, and irrigated areas. By implementing this methodology, we aim to strike a balance between maintaining competitiveness in lot pricing and addressing the increasing challenges and costs associated with water scarcity.

For the most up-to-date information on current rates and charges, we encourage you to visit the website at rangeviewmetro.org. This will provide comprehensive details about Tap Fees and other relevant aspects of our utility services.

Metered Water Usage

Our utility segment generates recurring revenues through metered water and sewer usage from our customers. To encourage conservation, we employ a monthly billing system that features an inclining water pricing scale. This conservation incentive scale is designed to promote responsible water usage among our customers and cost efficient pricing of this vital resource.

On average, our annual water revenues amount to approximately $1,000 per single-family-equivalent connection, and sewer revenues average around $500 per connection annually. Collectively, these contribute to a combined revenue of $1,500 per connection, emphasizing our commitment to sustainable water practices and providing cost efficient pricing of this essential utility service to our community.

Wastewater Treatment

Due to the scarcity of water in Denver, we use and reuse our water supplies.  The Company recently complete a $10 million state-of-the-art water reclamation facility which treats 100% of the Sky Ranch Community’s wastewater into reclaimed water for reuse as outdoor irrigation and industrial water supplies.  Recycling our water allows us to use and reuse our water supplies multiple times protecting, preserving and conserving our most valuable natural resource.

Industrial Bulk Water

In addition to serving our domestic residential and commercial customers, we also provide reuse and raw water to industrial customers for oil and gas activities.  We have invested in raw water and reuse water storage reservoirs together with high-capacity delivery capabilities to deliver high volumes of water to oil & gas operators.  Our water supplies, service areas, and infrastructure sit atop of one of Colorado’s most productive shale oil reserves where O&G operators have invested billions of dollars into developing and understanding the oil reserves.  The field has miles of O&G collection infrastructure and over 100 producing wells and will continue to develop thousands of wells over the next 50 years which will need continuing water for its activities.

Driving New Utility Customers: Land Development

We are actively developing the Sky Ranch master-planned community in the heart of metro Denver's booming real estate market. This 930-acre parcel of land will attract new commercial and residential customers alike.

View Our Land Development

Partnerships that Serve Colorado’s Water Needs

We partner with municipal and private water systems to improve their infrastructure and operations. If you are looking to monetize your water, or expand your water or wastewater capabilities, we can help.

Partner with Us