NAICS 2213

Water, Sewage & Other Systems

NAICS 2213 covers water treatment, distribution, wastewater management and sanitation systems. Essential utilities serving communities nationwide.

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 2213 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
52K
US Census CBP · 2023 · NAICS 2017
Establishments
5,210
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$4.1B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$77,927
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$20.0B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Water, sewage and other systems (NAICS 2213) encompasses establishments primarily engaged in operating water treatment and supply systems, sewage treatment and disposal systems, and other related sanitation infrastructure. This industry group is fundamental to public health and environmental protection, providing essential services that treat, distribute, and manage water resources for residential, commercial, and industrial customers. These operations typically include water intake, treatment, distribution through municipal infrastructure, wastewater collection, treatment, and disposal, as well as stormwater management systems. The industry operates under strict regulatory frameworks established by the EPA and state environmental agencies, ensuring compliance with the Safe Drinking Water Act and Clean Water Act requirements.

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Market sizing, workforce analysis, competitive landscape, regulatory environment — all sourced from Census, BLS, FRED, and SEC EDGAR.

Industry Trends

01

Aging infrastructure replacement is a major industry focus as many municipal water systems exceed 50 years in service life, requiring substantial capital investments in pipe replacement and system upgrades.

02

Digital transformation and smart metering technologies are being deployed to reduce non-revenue water loss, improve operational efficiency, and enable real-time system monitoring and demand management.

03

Increasing adoption of advanced treatment technologies such as membrane filtration, UV disinfection, and emerging contaminant removal systems to address water quality concerns and regulatory compliance.

04

Climate change adaptation strategies including drought resilience planning, flood management infrastructure improvements, and diversification of water sources through recycled water and desalination projects.

05

Public-private partnerships and regional collaboration initiatives are expanding as utilities seek funding mechanisms and operational efficiencies to address infrastructure needs and service expansion.

Frequently Asked Questions

What is NAICS 2213? ▾
NAICS 2213 is the industry classification for water, sewage and other systems establishments. It includes public and private entities that operate water treatment and distribution systems, wastewater collection and treatment facilities, and related sanitation infrastructure. These utilities provide essential services to communities by ensuring safe drinking water supplies and proper disposal of sewage and wastewater.
What are the primary service lines in this industry? ▾
The industry operates three main service lines: water supply (treatment, storage, and distribution of potable water), wastewater collection and treatment (sewage system operation and processing), and stormwater management systems. Many utilities operate integrated systems managing all three functions for their service areas, though some specialized systems focus on single service lines.
What regulatory requirements govern water and wastewater utilities? ▾
Water and wastewater utilities operate under federal, state, and local regulatory frameworks including the Safe Drinking Water Act (SDWA), Clean Water Act (CWA), and Resource Conservation and Recovery Act (RCRA). Utilities must comply with water quality standards, wastewater discharge limits, and safety requirements, with oversight from the EPA, state environmental agencies, and local health departments. Regular testing, reporting, and system updates are mandatory to maintain compliance.
How are water and wastewater utilities funded? ▾
Most utilities are funded through ratepayer fees and charges, bonds issued for capital projects, and grants from federal and state programs. Municipal utilities typically operate as enterprise funds or public authorities, generating revenue through metered service charges, connection fees, and sometimes stormwater fees, which fund operations, maintenance, and infrastructure upgrades.
What challenges does the industry face? ▾
Key challenges include aging infrastructure requiring massive replacement investments, water scarcity and drought conditions affecting supply reliability, rising operational costs, environmental compliance pressures, cybersecurity threats to SCADA systems, and difficulty raising capital for infrastructure improvements. Many utilities also struggle with non-revenue water loss from leaks and maintenance backlogs.

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