Beyond privatization : restructuring water systems to improve performance

Water utilities in the United States face significant challenges meeting the water supply, wastewater collection and treatment, and stormwater management needs of the communities they serve. Numerous solutions have been proposed to improve efficiency, including privatization. The debate over privatization has overshadowed the discussion of the determinants of performance. The polarized debate fails to adequately discuss the variety of solutions available to municipalities facing significant water sector problems.
This report provides guidance on restructuring water utilities for better performance, including but not limited to issues as involvement of the private sector. It is unique in its argue that public-versus-private is not the bright line that separates success from failure. Instead, performance depends on effective staffing, consistent public support for sufficient funding, better asset management systems, performance measurement and rewards, and more stakeholder involvement and transparency.
The report provides a framework for urban and rural municipal-level public decision makers to assess problems, identify possible solutions, and choose among these solutions. It provides practical information and examples about improving the effectiveness of water, wastewater, and storm water systems, whether public or private.
A best practice restructuring process is suggested; general guidelines drawn from research are offered, including specific solutions to illustrate critical points, drawn largely from utilities in the Upper Midwest. : the US states of Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, and Wisconsin, and the Canadian province of Ontario. However, the manual’s lessons extrapolate to other regions of the United States and beyond.