The Role of the Private Sector in Providing Water in Developing Countries

The purpose of this article is to describe the role of the private sector in the supply of water in developing countries. In addition to citing some of the advantages to private supply, the paper discusses some of the objections to private provision, namely 'Natural Monopoly', 'Externalities', and the alleged inability to charge for water. It is concluded that the main obstacles to the private supply of water services are political rather than technical or financial, and that the French Affermage system (or variations thereon) seems to be suitable for many developing countries. There also appears to be considerable scope, in both towns and villages, for consumer co-operatives, and for the enhancement of water vending.