Most communities in the United States and Canada have similar connection rates to those found at Point Alegre Water Services. Many home owners either purchase a used home with an existing connection and therefore only pay the fee for changing the billing contact which is relatively small compared to the connection fee. Some municipalites waive the connection fee and instead incorporate the service fee into the property tax, this is a less common fee model because over time it accumulates excess payments by the home owner. Costal communities have more expnsive water purification and treatment infrastructure and the connection fees are typically higher to reflect the extra capital equipment costs.
There is a range of connection fees across communities due to population, environment, and tax structure.
Below is a small sample of typical connection fees for typical residential 3/4" meters:
Each time a new home is added to a water system the water company must expand its infrastructure to produce/clean more water. This is not a profit center for the water company, it is simple a build-out of capacity to handle the higher occupancy. The water company charges the home owner to recoup this cost. When a home changes ownership only billing contact information must change, no additional infrastructure is added because presumably the new home owner will not consume more water than the previous home owner. Thus, connection fees are only charged when new homes are built and not when existing homes change owners.
The water company is generally a separate business from the land developer and therefore connection fees are general charged only when homes are built. Water companies do not create full capacity for new communities and instead add capacity as homes are built so that there is no wasted excess capacity in the early years when few homes exist. Home builders sometimes include the water connection fee into the cost of home construction.
A general article about connection fees can be found here