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Privatization Threatens
St. Louis’ Water
Fact Sheet • December 2010
S t. Louis should retain public control of its valuable water resources. The city’s
well-run water division provides quality drinking water to about 370,000
people1 and has never violated a water quality regulation in more than a century
of testing.2 The city should not risk jeopardizing the commendable operation by
transferring control to a private company like Veolia.
Veolia representatives toured St. Louis’ water facilities in Possible Consequences of Privatizing
September 2010, four months after the Show-Me Institute,
a libertarian think-tank, recommended selling the water
St. Louis’ Water Division
system to shore up the city’s budget. The mayor’s chief Costs could rise. The city should not expect water privati-
of staff denied that the city is considering a sale, but he zation to save money. In fact, in many cases, private opera-
did not speak to the possibility of privatizing the division tion is more expensive.5 Corporate profits, dividends and
through a lease or management contract.3 As it happens, income taxes can add 20 to 30 percent to operation and
Veolia typically does not buy U.S. water systems; instead, administration costs,6 and a lack of competition and poor
it runs publicly owned ones.4 negotiation skills can leave local governments with expen-
sive contracts.7
As with a sale, contracting out the operation of the water
division can end up hurting consumers. It often leads to In fact, several Missouri cities have recently ended priva-
high costs and poor service. tization and brought operations in-house to save money.
O’Fallon and Webb City, for example, have determined
that public operation is a better deal for their residents.8
Endnotes
For more information:
1 U.S. Environmental Protection Agency, Safe Drinking Water Information
System, Water System ID MO6010715. web: www.foodandwaterwatch.org
2 City of St. Louis. Water Quality Report. Consumer Confidence Report. email: info@fwwatch.org
2009 at 1. phone: (202) 683-2500 (DC) • (415) 293-9900 (CA)
3 Hunn, David. “St. Louis to sell Water Division? Not now, say city staff.”
St. Louis Post-Dispatch. September 30, 2010; “Veolia tours St. Louis
facilities.” American Water Intelligence, vol. 1, iss. 2. November 2010 at
Copyright © December 2010 Food & Water Watch