TFTT Report

Truth from the Tap has a new infographic that dives into a concept often championed by opponents of regulated, private water companies: the idea of “local control.” While “local control” might sound appealing on the surface, in reality, it can mean a politicalization of the water operations and ratemaking process.

The new infographic compiles insights from various academic studies and experts that show why keeping a water system under government control, without independent regulatory oversight, introduces significant challenges.

What are the pitfalls of “local control”?

• Politicization of Decisions: Local politicians often face pressure to keep water rates artificially low, even when it compromises the long-term health and safety of the water system. This can lead to decisions being driven by political expediency rather than operational best practices.
• Underinvestment in Infrastructure: When rate decisions are politicized, necessary rate increases for infrastructure improvements are often deferred, leading to under-investment. This can result in deteriorating infrastructure, posing significant public health risks.
• Electoral Concerns Over Public Health: The fear of “electoral punishment” can become a major barrier to effective service provision and essential investments.

When water rates and infrastructure investments are de-politicized, decisions can be made by water system experts, not politicians. Private water professionals are focused solely on running an effective and efficient utility that consistently delivers safe drinking water and are free from the competing priorities and political pressures that often burden local officials.