Water pricing and affordability in the US: public vs. private ownership

Abstract

We examined the 500 largest community water systems in the US to explore whether ownership is related to annual water bills, and the percent of income that low-income households spend on water. Regression results show that, among the largest water systems, private ownership is related to higher water prices and less affordability for low-income families. In states with regulations favorable to private providers, water utilities charge even higher prices. Affordability issues are more severe in communities with higher poverty and older infrastructure. Water policy needs to address ownership and regulation and explore new mechanisms to ensure water affordability for low-income residents. HIGHLIGHTS Privately owned water systems have higher water prices and are less affordable.; Water prices are higher in states with regulation that favors private investors.; Water affordability is lower in communities with higher poverty and aging infrastructure, regardless of ownership type.; Water policy needs to address issues of regulatory control and mechanisms to enhance affordability.;

Keywords

• poverty
• privatization
• state regulation
• water affordability
• water pricing