Resource detail

Challenges related to small town water services are: their relatively high unit costs, while not benefitting from the economies of scale and (cross‐) subsidies of large (urban) utilities; their low levels of water use and subsequent revenues; and high management capacity requirements, which are often not met locally in small town settings. Furthermore, small towns are dynamic in nature, being in transition, with often both rural and urban characteristics. Small town contexts vary widely. To overcome capacity challenges related especially to municipal and community management, delegated management has been introduced, with roles and responsibilities related to the operations of water supply systems being delegated to the private sector. Small town service providers require technical, administrative and institutional support. Different arrangements for the provision of these support services include support by local government, by private sector and NGOs, either directly to the service provider or under contract by the service authority, associations and umbrella organisations, or other service providers. The conclusions and recommendations note it is clear that there is not one single model for delivering small town water services that fits all. There are many different models for the management of rural and small town piped schemes, with different degrees of involvement of public and private sector institutions. There is a growing role of the private sector, both in providing small town water services, as well as in providing direct support to service providers. Also, gaps are identified in today’s institutional and regulatory frameworks and funding models, especially as these relate to the financing of capital maintenance.