Aurora, Colorado sits in the South Platte River Basin with a semi-arid climate averaging only 15 inches of precipitation per year. The city experiences hot summers with temperatures regularly exceeding 90°F and low humidity, forcing homeowners and commercial properties to depend almost entirely on irrigation systems to maintain lawns, gardens, and turf. This creates a consistent, year-round demand for irrigation services—from installation and repair to seasonal start-up, backflow testing, and winterization.
Aurora’s rapid population growth over the last decade has fueled new residential construction, with many subdivisions featuring automated sprinkler systems. At the same time, older neighborhoods east of I-225 have aging systems that require frequent repairs and upgrades. The local market is competitive but fragmented, with many small operators and a few larger landscaping companies. An independent irrigation specialist who focuses on quality, reliability, and local SEO can carve out a strong presence. Water restrictions enforced by Aurora Water (e.g., regulated watering days, mandatory backflow testing for commercial properties) add a layer of complexity that creates niche opportunities for service providers who understand compliance.
Starting an irrigation business in Aurora requires compliance with city, state, and possibly county regulations. Follow these steps to operate legally:
Every business operating within Aurora city limits must obtain a general business license from the City of Aurora Finance Department. The license costs approximately $50-$100 annually depending on business type. You also need to register for the Aurora Occupational Privilege Tax (OPT) if you work inside city limits, even if your business is based elsewhere.
Colorado requires a Sales Tax License from the Colorado Department of Revenue. You must collect and remit state and city sales tax on equipment and parts you sell (not on labor, unless you itemize separately). Aurora’s combined sales tax rate is 8.91% as of 2025.
Aurora does not require a separate contractor license for irrigation work alone, but if you perform any construction work over $15,000 in value, you need a City of Aurora Contractor License (Class A for commercial, Class B for residential). Many irrigation installations fall below that threshold, but it is wise to obtain a Class B contractor license anyway to appear credible and to bid larger jobs.
Colorado law and Aurora Water require annual testing of backflow prevention assemblies on all irrigation systems connected to the municipal water supply. To legally test and certify backflow devices, you must hold a valid Backflow Prevention Assembly Tester (BPAT) certification from the Colorado Department of Public Health and Environment (CDPHE) or a recognized testing organization. Without this certification, you cannot legally test or repair backflow devices—and this is a high-demand service in Aurora.
General liability insurance (minimum $1 million) is essential to protect against property damage and injuries. Workers’ compensation insurance is required by Colorado state law if you have any employees (including yourself if you form an LLC with a single member—check with your insurance agent). Many commercial clients will also require proof of insurance before awarding a contract.
Consider forming a Limited Liability Company (LLC) with the Colorado Secretary of State. This separates personal assets from business liabilities and costs about $50 to file online. You will also need an Employer Identification Number (EIN) from the IRS, even if you are a sole proprietor, for banking and tax purposes.
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