Water Finance

Water has quickly grown into a big global business, with annual revenues in the United States alone reaching over $200 billion. In the years ahead, companies as well as governments must find innovative ways to address important issues within this field without sacrificing basic needs, such as safety of drinking water or the reliability of water for energy production. Nobody understands this better than author Neil Grigg, a forty-year veteran of the water industry, and now, with Water Finance, he shares his extensive experience with you.

Most of the water business operates under the radar, but with this reliable resource, Grigg shines a bright light on this essential area and offers comprehensive coverage of the public responsibilities and private opportunities associated with it. While Water Finance does contain many facts and figures, it also takes the time to pull together the various aspects of water, going far beyond water as just a commodity, to skillfully explain it as the integrated business that it is.

• Opens with a detailed discussion of the water industry before turning its focus to water handling, which includes water supply, wastewater, industrial water, storm water, irrigation and drainage, and instream flows
• Reveals the different driving forces, and issues, surrounding the water industry such as government involvement, privatization, law and regulations, financial structure, water and health, and workforce capacity
• Offers insights on water industry business, careers, and investments

Organized around the idea that the water business is about all aspects of handling water, from the global environment to your tap, Water Finance contains the information you need to succeed in this dynamic field.

List of Illustrations xi

List of Tables xiii

Preface xv

Acknowledgments xvii

PART ONE: Structure of the Water Business 1

CHAPTER 1: Water for People and the Environment 3

CHAPTER 2: A Model of the Water Business 17

CHAPTER 3: Dams and Reservoirs for Multiple Purposes 47

CHAPTER 4: The Water-Supply Utility Business 65

CHAPTER 5: The Wastewater and Water-Quality Business 91

CHAPTER 6: Stormwater and Flood Control 103

CHAPTER 7: Industrial Water and the Water-Energy Nexus 117

CHAPTER 8: Water for Food Production 129

CHAPTER 9: Instream Flows: Competing for Water in the Commons 143

PART TWO: Driving Forces and Issues in the Water Industry 153

CHAPTER 10: Drivers of Change in the Water Industry 155

CHAPTER 11: Government and Politics in the Water Business 171

CHAPTER 12: Financing the Water Industry 187

CHAPTER 13: Public Health as a Water-Industry Driver 213

CHAPTER 14: Law and Regulation in the Water Industry 223

CHAPTER 15: Water-Industry Workforce: Crisis and Opportunity 241

CHAPTER 16: Private-Sector Operations in the Water Industry 255

PART THREE: Water-Industry Businesses, Careers, and Investments 265

CHAPTER 17: Constructing Water-Industry Infrastructure 267

CHAPTER 18: Services to Support the Water Industry 275

CHAPTER 19: Equipment for the Water Industry 289

CHAPTER 20: Commodity Water: Transfers, Exchanges, and Water Banks 301

CHAPTER 21: Bottled Water and Point-of-Use Treatment 309

CHAPTER 22: Safe Water For All: The Ultimate Water Business 319

CHAPTER 23: Water Investments, Careers, and Business Opportunities 325

Acronyms 339

References 345

About the Author 359

Index 361

Neil S. Grigg is Professor of Civil Engineering at Colorado State University. He has worked as professor, administrator, and consultant in the fields of infrastructure engineering and management, water resources engineering, urban water systems, and public administration of infrastructure facilities. Grigg is a registered professional engineer in Colorado, Alabama, and North Carolina. He has served as a consultant for many UN agencies including FAO, UNDP, and UNESCO.

Water has quickly grown into a big global business, with annual revenues in the United States alone reaching over $200 billion. In the years ahead, companies as well as governments must find innovative ways to address important issues within this field without sacrificing basic needs, such as safety of drinking water or the reliability of water for energy production. Nobody understands this better than author Neil Grigg—a forty-year veteran of the water industry—and now, with Water Finance, he shares his extensive experience with you.

Most of the water business operates under the radar, but with this reliable resource, Grigg shines a bright light on this essential area and offers comprehensive coverage of the public responsibilities and private opportunities associated with it. While Water Finance does contain many facts and figures, it also takes the time to pull together the various aspects of water—going far beyond water as just a commodity—to skillfully explain it as the integrated business that it is.

Divided into three informative parts, this book opens with a detailed discussion of the water industry before turning its focus to water handling, which includes water supply, wastewater, industrial water, storm water, irrigation and drainage, and instream flows. Part One also explores dams and groundwater systems, which are two important elements of our water infrastructure.

Part Two moves on to reveal the different driving forces and issues surrounding the water industry such as government involvement, privatization, law and regulations, financial structure, water and health, and workforce capacity. A chapter that looks ahead to how the emerging water industry will respond to societal trends is also included. Part Three rounds out this accessible guide by offering insights on water industry business, careers, and investments. Topics touched upon here include everything from the products and services connected to water and the business of commodity water to the ultimate challenge of using business and philanthropy to address the critical issue of safe drinking water and sanitation for all.

Organized around the idea that the water business is about all aspects of handling water, from the global environment to your tap, Water Finance contains the information you need to succeed in this dynamic field.

Praise for WATER FINANCE

"Neil Grigg provides a very accessible overview of the many players involved in water and their many connections. His concept of 'water handlers' helps bring some order to the water business—an excellent introduction for all those interested in the 'business of water.'"
—Frank Rijsberman, Director, Water, Sanitation, and HygieneBill & Melinda Gates Foundation's Global Development Program

"If you want to really understand the big picture of the drinking water business, this is the book to read. Neil's four decades of experience working and volunteering in the water community—from the water source all the way to the customer's tap—help the reader to understand the intricacies and challenges of business management at the global and local level. Not only does Neil's writing style speak to the business community, but his writing reaches out and touches the women and men on the front line of providing reliable and safe drinking water to the public."
—Robert C. Renner, Executive Director, Water Research Foundation

"Dr. Grigg provides an expansive discussion of the complex framework and issues related to water management in a world where water availability will have critical influence on our future lifestyles and the environment that surrounds our cities and farms, as well as cultural and recreational uses. He adroitly recognizes that the current lack of political will and a cogent framework in which a reasonable balance between competing interests is a limiting factor in transitioning past practices to those that will be required in an increasingly resource-constrained twenty-first Century."
—Peter D. Binney, PE, Director, Sustainable Infrastructure, Merrick & Company

"Water is a commodity and a natural resource. In Water Finance, Neil Grigg delves into the dual nature of our water conveyance systems, introducing the reader to the 'business of water' and outlining the separate facets that make water resource management different and more complex than just a commodity industry."
—Elizabeth Cutright, Editor, Water Efficiency magazine

"This interesting book is a must for water sector academics, professionals, and decision-makers. Many related graphs by the author are very illustrative and explain the major messages and views. Although there is emphasis on the U.S., there are also many examples from other parts of the global village."
—Tapio S. Katko, Adjunct Professor, Tampere University of Technology, Finland