Water Supply Industry Course Correction Required

Water is an essential ingredient for life. Our current pricing system does not reflect the value of water nor account for its scarcity. Current water rates are inefficient and subject to government subsidies resulting in wasteful water usage practices. Additionally, the inefficiencies in the market place act to discourage competition and improved water practices. Policies to internalize the externalities inherent in our water rates would help make the market more efficient as well as changes to the tax code to allow for tax exempt status for private debt for domestic firms engaging in water supply projects. This improvement would improve domestic competition in the marketplace.