Las Vegas residents sue water district over excessive use fees

Residents in the Las Vegas Valley have filed a class-action lawsuit against the Las Vegas Valley Water District, challenging the legality of its ‘Excessive Use Charge’. The lawsuit, led by Anthony Marnell III, argues that the fee is an unauthorized tax rather than a cost-based service charge and lacks the legal authority for implementation.

Since January 2023, the district has applied a flat $9 penalty for every 1,000 gallons used beyond seasonal thresholds—approximately 14,000 gallons in winter and 28,000 gallons in summer. This rate is significantly higher than the district’s standard tiered rates. The lawsuit claims the fee has generated over $96 million in revenue for the district.

Plaintiffs report that the charges have caused significant financial strain, even in cases where water consumption was reduced. The district maintains that the fees are necessary to manage water resources as Nevada faces federal cuts to its Colorado River allocation, which provides about 90 percent of the district’s water supply. The district asserts the strategy has saved approximately 10,000 acre-feet of water annually.