Has The Public/Private Debate Become A 'Secret War' Over Drinking Water?

There’s a “secret war” being waged over our drinking water.

At least, that’s according to some observers who say that efforts to privatize water utilities have become an outright war.

“A battle is underway between private companies attempting to step in to take over ownership or management of public water systems in the U.S. and advocates who are blocking their efforts to do so,” The Huffington Post recently argued in an analysis piece.

Legislation under consideration in Wisconsin and already passed in New Jersey make it easier for localities to partner with private entities. A Pennsylvania law simplifies private utility takeover financing.

The Huffington Post spoke to leaders on both sides of this issue to get their input. Lauren DeRusha, water campaign senior organizer at the activist group Corporate Accountability International, came down firmly opposed to privatization.

DeRusha argued that private water companies are “attempting to use policy as one of several avenues for eliminating democratic processes when it comes to the management of water.”

Ill-conceived policies and budget cuts are making it more difficult for public utilities to stay afloat, she said.

“The top line is that our public water systems, which are such an important backbone of our society and which we’ve counted on for our public health and relative equality for a long time in the U.S., used to be very well-funded by the federal government. In the ‘80s, that funding all but dried up, so what we have now is a country full of water systems that are badly in need of infrastructure repair and are very badly underfunded.

Michael Deane, executive director, National Association of Water Companies, weighed in with a different view.

“It’s very important that people understand water is not private, unless you buy it in a bottle, I guess. Water is essentially a public good. We are the agents of public policy, and typically states own or have the rights to the water and we’re talking about the system that treats and delivers it. It’s not like any of our companies own the molecule of water in a legal context,” he said.

He questioned the notion of a battle between public and private providers.

“Across the board, public and private utilities and municipal partners are realizing they have to work much closer together. It’s not public vs. private. Every community has something they need to address and in some cases they can do it on their own and in some cases they’ll sell to a private company and in other situations a private company can do just part of it,” he said.

For more on best management practices for running a utility in a fiscally responsible manner, visit Water Online’s Funding Solutions Center.