Page 73 - Urban water supply handbook

STRATEGIC PLANNING FRAMEWORK FOR SMALL WATER SYSTEMS

2.6 HISTORY, PLANNING, OUTSOURCING

may not provide management and operation of the water system or its various
functions.
At the operational level, water utilities are similar to other utilities in terms of
basic utility functions: source-water development and protection, drinking water
treatment, treated water storage, transmission and distribution, retail customer ser-
vices, and regulatory monitoring and reporting. Performance of the physical deliv-
ery functions requires both long-term investment in capital facilities and specific
operational and maintenance tasks over time. Traditional water utilities tend to be
vertically integrated; that is, the utility operates all functions and provides them on
a bundled basis to customers. The separation of functions in this manner (or
unbundling) is useful for strategic planning purposes because it encourages the
consideration of alternative service roles for the water utility.
Assuming a role, however, involves choice; not every system must assume
every role for every service function. Through restructuring, some roles and
responsibilities may be retained while others are shifted. Over time, roles can
change and evolve, and responsibilities for some service roles and functions can
be assigned to others. Some systems, for example, might purchase wholesale
treated water and concentrate efforts on water distribution and customer services.
Others might contract with a private company for specific projects or for general

FIGURE 2.1 Water system organizational hierarchy.

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