Community demands imply that water services must be safe for use, affordable, sourced from a supply that is reliable and have minimal impact on the environment. Retaining public confidence in the delivery of these community service obligations is important if the private sector is to have an expanded role in the water sector.
It is probable that the private sector would be subject to similar governance arrangements and regulatory settings as are in place for government-owned water utilities. It is important for the regulatory settings which govern the delivery of community service obligations to avoid distorting the choice between various sources of water supply or water efficiency measures.