TFTT Report

Activists often make a vague argument against private water solutions that centers on the notion of “local control.” They argue that private sector involvement in water delivery inherently strips control of the precious resource away from local communities.

For starters, the claim that private water companies take over “control of water” is a scare tactic not grounded in facts. No matter the model of utility operation – public or private – the water source remains a public good.

But beyond this basic misrepresentation, while “local control” may sound desirable to the casual observer, it doesn’t tell the full story. What “local control” actually means is “under the control of local government” – an entity run by politicians and bureaucrats with many competing interests and priorities.

Typically local politicians are under intense pressure to keep water rates low. After all, nobody wants to reelect a city councilperson who raises rates or taxes. However, rates that fail to generate enough revenue to properly operate, maintain and invest in a water system putting drinking water and public health in danger.

Studies show this phenomenon in action. An analysis of EPA data found that government-owned utilities (those under “local control”) are 24% more likely to have violations of the Safe Drinking Water Act (SDWA) compared to privately-owned utilities. And the study authors effectively point to “local control” as the culprit, finding that because rate increases are politically challenging for local officials, it is difficult for government-run utilities to generate the revenue necessary for crucial upgrades and routine maintenance. The deferred investments and delayed maintenance caused by a lack of revenue have a direct correlation with a higher rate of SDWA violations.

An often overlooked benefit of working with a private water company is that water rates and utility operations are de-politicized, and professional operators can focus solely on running an efficient utility that delivers safe drinking water. While local governments have a vast array of services to provide, private water professionals can put their attention exclusively on the water system.

As we all know, water treatment and delivery operations are extremely complex, requiring a high level of expertise. And the consequences of mismanagement are severe. “Local control” may sound appealing, but it is not a model that is guaranteed to ensure proper water utility investment and operation.