Water to the North, Sewer to the South: Bentonville Signals Its Next Phase of Growth

At its February 10 meeting, Bentonville leaders will consider two major infrastructure moves that, when viewed together, offer a clear signal about how the city is preparing for continued regional growth.

One focuses north. The other south.

Both center around capacity.

Resetting the Bella Vista Water Agreement

Bentonville’s wholesale water agreement with the Bella Vista Property Owners Association expires at the end of this year. That expiration gives the city a rare opportunity to revisit how water is priced, structured, and managed between the two communities.

Bella Vista purchases treated water from Bentonville through three metering stations. The relationship generates roughly $1.8 million in annual revenue for Bentonville, with an estimated net margin of approximately $470,000.

Under the proposed revised agreement, Bella Vista would pay a monthly base charge of $50,923 beginning January 1, 2026. In addition, bulk water charges would be tied directly to Beaver Water District rates, plus a 10% markup. Usage exceeding 5.25 million gallons per day would trigger a 20% surcharge.

This structure does two things:

  1. Protects Bentonville’s operating margin

  2. Establishes guardrails around peak capacity

That second point is critical.

As Northwest Arkansas continues to grow, water availability and peak demand management become strategic tools. The agreement caps maximum daily and hourly flow, signaling that Bentonville is protecting its own long-term supply and infrastructure resilience.

There’s also a capital component behind the scenes. City documents estimate that Bella Vista’s 17.5% share of current infrastructure valuation would equate to roughly $28.4 million in today’s dollars. Over the past 20 years, total capital payments have been under $3 million.

That gap isn’t necessarily a dispute — but it underscores why the contract reset matters. Infrastructure valuation, operating costs, and future capacity all become part of the negotiation.

In short: this isn’t just a rate adjustment. It’s a recalibration of regional infrastructure economics.

$2.7 Million Sewer Expansion to the South

While the water conversation focuses north, the Utility Board is simultaneously advancing a major wastewater project.

The city is considering approval of a $2.71 million engineering agreement for the South Basin Lift Station Phase I project. The work includes construction of a one-million-gallon equalization basin and upsizing approximately 8,100 linear feet of sewer line to address current and peak flow conditions.

The project is funded through wastewater development fee revenue bonds — meaning growth is helping fund growth.

This type of investment doesn’t happen randomly. Lift stations and pipe upsizing are direct responses to development pressure and projected capacity demand.

If the water contract signals regional leverage management, the sewer expansion signals internal readiness for continued build-out in southern Bentonville growth corridors.

The Bigger Picture

Taken together, these two agenda items tell a cohesive story:

  • Bentonville is tightening wholesale water structure to protect capacity.

  • It is investing heavily in sewer infrastructure to support expansion.

  • It is aligning financial tools with long-term system sustainability.

Water and wastewater rarely make splashy headlines. But they are the invisible framework that determines how far and how fast a city can grow.

As Northwest Arkansas development pressure continues, infrastructure — not just zoning or land availability — will increasingly shape the trajectory of communities across the region.

This week’s meeting suggests Bentonville understands that.

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