ABSTRACT
This chapter traces the history of the National Water and Sewerage Corporation of Uganda (NWSC) and document how it functions in small towns. In 2013, the Ministry of Water and Environment of Uganda decided to enlarge the mandate of NWSC to progressively also absorb the management and operations of small towns, villages and other settlements in transition such as rural-growth centers. NWSC expresses the performance of water service provisioning in small towns in what is called the working ratio, which represents the relationship between costs and revenues. Studies have confirmed that operational costs for water provisioning in small towns surpass those in bigger urban settlements. The choices in water production facilities and the quality, length and location of the distribution network are of strategic importance in determining cost efficiencies. The possibility of realizing economies of scale by aggregating towns and the practice of cross-subsidization make it possible for NWSC to present water systems in small towns as commercially viable.
