What are the consequences of giving …

Water privatization – when private corporations buy or operate public water utilities – is often suggested as a solution to municipal budget problems and aging water systems. Unfortunately, this more often backfires, leaving communities with higher rates, worse service, job losses, and more.

Problems with Water and Sewer Privatization
Loss of Control
Privatization is irresponsible. By privatizing water and sewer systems, local government officials abdicate control over a vital public resource.
Privatization limits public accountability. Multinational water corporations are primarily accountable to their stockholders, not to the people they serve.
Loss of public input. Because water service is a natural monopoly that lacks a true market, consumers can exercise choice only at the ballot box through the election of the public officials who oversee their utility. They don’t have a vote in the corporate boardroom. With public ownership, residents can visit their elected officials and directly express their opinions about the operation of their water systems. If the officials fail to respond, the community can vote them out of office. The public lacks similar mechanisms to address their concerns with private utilities and appointed state regulators, and long-term complex contracts can tie the hands of local governments.
Loss of transparency. Private operators usually restrict public access to information and do not have the same level of openness as the public sector.
The objectives of a profit-extracting water company can conflict with the public interest. Because a water corporation has different goals than a city does, it will make its decisions using a different set of criteria, often one that emphasizes profitability. This can create conflict.
Cherry picking service areas. Private water companies are unlikely to adopt the same criteria as municipalities when deciding where to extend services. They are prone to cherry-picking service areas to avoid serving low-income communities where low water use and frequent bill collection problems could hurt corporate profits.
Contributing to sprawl. Local governments can use the provision of water and sewer services to promote smart growth, while water companies often partner with private developers to supply service to sprawling suburbs.
Undermining the human right to water. As a result of price hikes, service disconnections, inadequate investment and other detrimental economic consequences, water privatization often interferes with the human right to water.