ABSTRACT
Water provision is a complex service, most frequently provided at the local level. It is a critical infrastructure for human welfare and economic activities taking place in their jurisdiction. Market failures are frequent and relevant in the water sector. This chapter uses a combination of history, theory, and quantitative knowledge to analyze the motivations and outcomes of public and private intervention in the delivery of drinking water services. The history of water service delivery is reviewed, the main economic theoretical streams on the topic are discussed, and the empirical existing evidence on outcomes costs and other effects are reviewed. Based on these analyses, an assessment is made of the tension that has reemerged between public and private delivery of water services.
