Internationally, the regulation of water supply service organisations is a vital component in ensuring good service delivery, the progression towards full cost recovery, and ensuring water demand management is effectively implemented.
This paper presents an overview of the steps which need to be taken to support the commercialisation of water service providers in the smaller towns and cities throughout China. It examines the policy and legislative background related to water supply and the existing regulatory arrangements. It also examines the present use of regulatory instruments (direct control, economic control and self-regulation) and assesses their effectiveness.
Recommendations are presented for the formation of a Provincial Regulator to drive forward the commercialisation of water companies and the development of a customer focused industry. It concludes by presenting an outline of the structure, tasks and skills associated with the creation of a Provincial Regulator.
WRDMAP. Regulation of Small and Medium Sized Water Supply Companies [Thematic Paper 4.3]. WRDMAP, China (2010) 24 pp