Introduction

One of the most important trends in the water industry is the transfer of the production, distribution, or management of water or water services from public entities to private corporations, broadly called “privatization.” The privatization of water utilities in the United States has been accelerating as major multinational corporations have greatly expanded their efforts to gain a larger portion of the nation’s water service market.

Entrusting a profit-driven company with an indispensable public service has always been a controversial concept primarily because of the possible contradiction between short-term profit maximization and long-term needs to protect infrastructure and natural resources. The profit motive may provide private water companies with incentives to avoid conservation and efficiency measures since profits depend upon volumes of water sold. Also, the privatization of water utilities has posed risks of rate hikes, negative economic impacts, inadequate customer service, and reduced local control, and raises questions concerning public access to information about water systems.

Lack of government oversight and public scrutiny has been one of the strongest criticisms of water privatization. Without proper government supervision, privatization will not address issues related to conservation, water quality, or fair access to water regardless of income. To ensure public-private water agreements are carefully designed and implemented to protect public interests concerning these issues, strong public regulatory oversight should be a fundamental requirement before a public agency shifts its responsibility for water utilities to a private entity.

This web site contains the tools necessary for your state to create legislation regulating the privatization of public water utilities. These tools include sample legislation, talking points, press clips, a fact pack, links, and other background information.

We may have other useful materials on this subject, which are not posted on our web site. Please feel free to contact us at [email protected] or call our office in Madison, Wisconsin, at (608) 252-9800.

If you’ve used this site and found it helpful or, if you have suggestions about how it could be made more helpful, please let us know. Feel free to use the sample bill text included here in your state. If you do, please notify us.