Water systems in California: Ownership, geography, and affordability

Abstract

Abstract This study asks whether different types of water systems serve different types of communities and differ with respect to affordability. Using 2017 data for California we match service area boundaries with census income data and rate structures to compare the geography, income distribution and affordability of water rates within communities served by systems of different ownership types. We find that for-profit and publicly owned systems serve communities of similar income distributions, while not-for-profit mutual water companies serve higher-income communities. Regulated privately-owned systems charge more for water while providing more low-income assistance and shutting off fewer households than publicly owned systems.