Water Groups Pushed for Private Utility Partnerships
A new white paper highlights how private utility partnerships can address critical infrastructure needs in small systems.
Updated on Oct. 10, 2026 in Utilities
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Trust in Water has released a report detailing how small water systems have used private partnerships to fund repairs and improve compliance. The findings highlight significant infrastructure gaps affecting the 81 percent of U.S. public water systems that serve small populations.
Why it matters
Small water systems frequently struggle with aging pipes, shrinking workforces, and stringent regulatory requirements that they are often ill-equipped to manage alone. Private partnerships offer a potential pathway to access the capital and technical expertise needed to modernize these essential services.
Small water systems serving fewer than 3,300 people require $4,065 in infrastructure investment per person. Nationwide, drinking water systems face a total projected investment need of $2.1 trillion to $2.4 trillion through 2050.
The players
Trust in Water
This is an organization that advocates for sustainable water solutions and conducts research on utility management models.
Environmental Protection Agency
This federal agency is responsible for setting and enforcing the drinking water standards that govern utilities across the country.
The details
The report highlights success stories in West Virginia, Missouri, and Pennsylvania where private entities invested millions into failing infrastructure. These interventions allowed systems like the East Dunkard Water Authority to repair dozens of leaks and helped Cedar Grove slash water loss by over 90 percent.
Timeline
Garden City recorded 27 treatment violations between 2015 and 2021.
The East Dunkard Water Authority suffered a major system failure in October 2023.
The EPA established new enforceable standards for PFOA and PFOS in 2024.
The U.S. water sector requires massive investment between 2026 and 2050.
Market Landscape
The rising compliance costs associated with the 2024 EPA enforceable standards for PFOA and PFOS underscore the difficulty small systems face without outside investment. This trend is accelerating industry consolidation as smaller municipalities struggle to maintain aging pipes against a backdrop of shrinking workforces.
Residents served by small water systems may see changes in ownership or management as municipalities seek to fund necessary repairs through private deals. These partnerships aim to improve water safety and reliability, though they can shift how utility service is billed and managed.
The takeaway
Small water systems act as a critical but fragile component of the national infrastructure that requires substantial capital to survive. Communities facing frequent noncompliance issues are increasingly turning to external partnerships to secure the funding necessary for long-term modernization.
Further reading
For more information on the infrastructure challenges facing the country, visit the Utilities section.
More information
To review the full findings, visit the Trust in Water organization website.
Source note: This article includes information reported by Water Online.
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