Private-sector Innovation On Tap

Governments at all levels are facing pressures from budget deficits, crumbling infrastructure, and increasing regulatory mandates. In Reason's latest How-to Guide, Reason Public Policy Institute Executive Director Adrian Moore provides practical advice on how local governments can tap private-sector innovation to provide safe and affordable drinking water. The Environmental Protection Agency estimates it will cost $150.9 billion to update the nation’s water systems over the next 20 years. The American Water Works Association predicts the bill will be even higher - $250 billion to replace worn out pipes and structures over the next 30 years. Facing the prospect of having to dramatically raise rates or taxes to fund the needed repairs and improvements, governments across the country are hiring private companies to manage their water operations. Several large cities, including Indianapolis and Atlanta, have already turned over their water systems to private companies. In 2000, 25 cities entered into long-term water or wastewater contracts with private companies.

Thanks to George Passantino