ABSTRACT

Drinking water is provided to individuals in the United States in a number of ways. Publicly owned and operated municipal systems are where a slim majority of individual Americans get their water today, though slightly over half of community water providers are small and privately owned (see Figure 1) (EPA 2000). Privatization can be done in a variety of ways and result in a variety of outcomes. While a move to privatize is often done for perceived increases in efficiency, questions arise around the private sector’s ability to handle issues of equity and conservation. Privatization also raises questions of a philosophical and ethical nature. Is water solely a commodity, and if so, who decides the value of water? Should everyone have equal access? What should be reserved for the environment? This paper provides suggestions on how to start addressing these issues in cases where municipal water providers consider the privatization of water provision services. Its aim is to provide recommendations that work for the United States but could also be considered whenever a government entity anywhere is faced with the question of turning to water service privatization.