Our Stories

Why Private, Regulated Water and Wastewater Utilities are Built for the Future

Water is essential. But managing the infrastructure that delivers it? That’s a complex, high-skill operation. With aging infrastructure, rising costs, and evolving regulations, communities are turning to private, regulated water and wastewater providers to keep things flowing safely, efficiently, and sustainably.

Consistency in Safe, Reliable Service 
Private, regulated water and wastewater companies, with their primary focus on operational excellence, offer specialized technical expertise in managing and optimizing water and wastewater treatment plants, so services remain safe and clean for customers and the environment. These companies help ensure timely maintenance of distribution and collection systems, helping to keep infrastructure reliable and efficient. Additionally, private water and wastewater companies provide long-term vision and capital planning that balances affordability with strategic investment, helping to ensure that services consistently meet federal and state regulatory standards. 

Operational Excellence Through Economies of Scale

  • Private, regulated water companies bring a workforce comprised of trained experts, technicians, scientists and engineers possessing decades of experience and specialized knowledge in managing water resources with the best practices of providing safe, clean, reliable and affordable service to customers and communities.
  • The large, industry-leading regulated water utilities, like American Water, enhance technical expertise with size and scale across multiple states to achieve excellent outcomes for the benefit of customers, employees and other stakeholders.

Financial Strength to Meet the Challenges

  • Aging infrastructure crisis: America’s more than 2 million miles of underground pipes have an average life expectancy of approximately 78 years and many of the newer pipe segments are reaching the end of their design life.* Nationwide, water infrastructure is aging and underfunded, and continuing without a strategic, long‑term vision is not sustainable.
  • Water infrastructure projects require substantial investment: Private water providers have access to private capital, reducing the financial burden on public agencies. Partnerships with private, regulated water companies have enabled some communities to eliminate significant debt and reinvest proceeds in other public infrastructure projects, like roads and parks.
  • Long-term planning: Strategic investment balanced with rate affordability ensures sustainable service for future generations.

American Water’s Commitment

With $46-$48 billion planned investment across its footprint over the next decade, American Water is accelerating upgrades to the critical infrastructure to keep life flowing. American Water is bringing modern systems to communities across its footprint in an efficient manner. 

Why it Matters

  • Reliability: Private, regulated water utilities deliver operational performance, service continuity, and emergency response.
  • Sustainability: Many private water providers, like American Water, are leading in source water protection, water conservation and resilience. 
  • Transparency & accountability: Regulated by state commissions, private, regulated water utilities are held to high standards for performance and rate-setting.

Revisit our Water Privatization Solution blog series:
Part 2: The Privatization Solution: Why Communities are Rethinking Water & Wastewater Ownership
Part 1: Private Water and Wastewater Companies as Solutions Providers

*American Society of Civil Engineers. (2025). 2025 infrastructure report card for America’s infrastructure (Drinking Water report).  https://infrastructurereportcard.org/wp-content/uploads/2025/03/Drinking-Water.pdf