ABSTRACT
Commercialization has pervaded the provision of water services to such an extent that the principles of cost recovery and of political autonomy have become important markers of good performance. The conceptualization of policy implementation hinges on the acknowledgment that for policies to shape actual practices and outcomes, they need to be translated into operational realities. A cornerstone of the commercial water services models is that operators should be autonomous: they should be financially and politically independent from governmental agencies. Official accounts and studies of commercialization generally show impressive increases in cost recovery and financial sustainability, lower levels of non-revenue water and increased coverage. Mutual agreement on and continued adherence to the dominant models of commercial water provisioning is a mechanism to make this mutual dependency work for all primary parties, at least on paper. In the policy prescription, tariffs that match or reflect the real cost of producing and distributing drinking water are a key element to increase revenues.
