Building Water 

System Capacity: 

A Guide For Tribal 

Administrators 

Capacity Development: 

The process through which drinking water systems 

acquire and maintain the technical, managerial, 

and financial capabilities to consistently provide 

safe drinking water. 

United States 

Environmental Protection 

Agency 

Office of Water 

(4606) 

EPA 816-K-01-006 

July 2001 
What Is Capacity


Development?


•	 Capacity—means a system has the technical, managerial, and 

financial capabilities to consistently deliver safe and adequate water. 

•	 Capacity development—refers to an increase in a system’s ability to 

provide safe and reliable drinking water to its customers. 

•	 Capacity development—is an on-going process of trying to find more efficient 

ways of running and operating a system while planning for the long-term. 

Capacity development has three interrelated components: 

✔ Technical capacity is the physical and operational ability of a water system to meet Safe Drinking 

Water Act (SDWA) requirements. It refers to the physical, or infrastructure components of the water 

system, including the characteristics of the source water, the adequacy of treatment, and the condition 

of the pump, treatment, storage, and distribution systems. Technical capacity also refers to the 

technical knowledge and capability of system personnel to properly operate and maintain the system. 

✔ Managerial capacity is the ability of the system to conduct its affairs in a manner which allows it to 

achieve and maintain compliance with SDWA requirements. It refers to the overall organizational structure of the system. A system with adequate managerial capacity has a clearly identified owner who is 

accountable for the system. The staffing and organization of the system allows the efficient use of 

human resources and assigns clear authorities and responsibilities between the Tribal Council or 

Chairman, managers, operators and customers. Further, the system enjoys effective linkages to 

people and organizations that can provide help in case of need. 

✔ Financial capacity means the system has the ability to acquire and manage sufficient funds to 

achieve and maintain compliance with SDWA requirements. A system with adequate financial capacity 

will have the revenue sufficiency to cover all costs—even if there is no charge for water—and will 

invest in infrastructure replacement. It will have the credit worthiness to allow the system to borrow 

money, and will use established fiscal management and controls to keep track of payments and receipts. 
Building Capacity 

Administration
 Ownership 

Accountability 

Clear identification of system owners and operators—whether tribal, 

IHS or private—and their roles and 

responsibilities can help prevent 

confusion, mistakes, and misunderstandings in the daily operation 

and management of the system. 

The accountability of the owner is 

essential for a water system to 

conduct its affairs effectively. 

Fiscal Management 

and Controls and 

Credit Worthiness 

Sound financial management 

allows a system to maintain efficient and effective water system 

operations. Adequate fiscal 

controls, such as following established accounting principals, will 

help with budgeting, financial planning, and revenue management. It 

is also important for systems to 

Water Source 

establish a good credit history. A 

system that is credit worthy will be 

able to borrow money for unexpected repairs, replacements, or 

other costs. 

Source Water 

Systems must have a safe, reliable, 

and protected source of supply to 

conform with drinking water regulations over the long term. Systems 

should locate and use high-quality 

sources whenever possible, protect 

them from potential contamination, 

and determine whether they can 

supply a sufficient quantity of water 

on an on-going basis. 
Staffing and 

Organization 

Water system staff must know how to 

manage effectively all aspects of a 

water system. Managers must 

understand the system’s operation, 

know about regulatory requirements, 

and oversee compliance activities in 

order for the system to provide safe 

and reliable drinking water. The staff 

must be organized in a way to 

the proper certification to operate 

their utility. Further, the system 

should have an operation and 

maintenance program, along with 

proper emergency response 

procedures, to prevent deterioration 

of the system and protect their 

customers’ health in times of crisis. 

Revenue Efficiency 

A positive net income (i.e. having 

enough revenue to cover all 

costs) is a good indicator of 

financial capacity. To develop and 

maintain a positive net income, 

systems may need to increase 

revenues, reduce costs, or both. 

Infrastructure 

System infrastructure needs to be Distribution


repaired and replaced as it ages. 

Failure to replace deteriorating system components or facilities can 

threaten the quality and safety of the 

water supply and pose a risk to public health. Treatment must be sufficient to remove the contaminants 

found in a system’s source water. 

Water storage tanks must be 

ensure efficient operation of the system. There must be clear duties and 

responsibilities assigned to each 

manager and operator to prevent 

duplication of effort and tasks failing 

to be completed. It is also critical 

that system personnel have the 

proper licenses and certifications to 

legally run the water system. 

Effective Linkages 

Water systems need to interact 

regularly with their customers and 

regulators. System personnel also 

need to know where to get technical or financial help. Building relationships with assistance 

providers, regulators, and water 

users will increase a system’s 

Treatment 

Storage 

Technical Knowledge 

On-going training and education are 

important to ensure that managers 

and operators stay current on all water 

system requirements and can effectively implement these requirements 

to provide safe drinking water to their 

customers. System operators should be 

knowledgeable of all the relevant 

contaminants and treatment techniques 

for their systems, and should have 

maintained in good condition to 

prevent contaminants such as 

dirt, birds, and small animals from 

entering the system. It is also 

important to keep the distribution 

lines in good condition to prevent 

contamination through leaks or 

breaks. By planning for future 

needs, the system can reduce the 

possibility of facing unexpected costs 

that the system cannot afford. 

ability to solve problems as they 

occur. Informed customers can 

become the best support of a 

public water system. 
Why Capacity Development Should Be


Important To Tribal Drinking Water Systems


The focus is on the 

future. Capacity development represents an opportunity for Tribes to head in a 

new direction to improve Tribal 

drinking water systems. A water system with capacity solves today’s issues with 

an eye towards the future, thereby reducing the 

occurrence of serious problems. 

Capacity 

development promotes dependable operation of the system. Systems with adequate capacity are better able to handle emergencies and unexpected 

costs, and are able to consistently supply safe 

and adequate drinking water. 

Public Health Protection 

Customers rely on their water system to provide safe water for drinking, bathing, cleaning, and 

cooking. 

viruses, or chemicals to enter. 

tem that achieves and maintains capacity will be better able to protect public health by keeping 

problems from turning into public health hazards and responding quickly and effectively to 

emergencies. 

protecting public health by consistently providing safe drinking water. 

Tribes stand to gain more 

control of their water 

programs. Through capacity 

development, Tribes can gain more control 

over their drinking water. 

capacity, Tribes can obtain the necessary 

resources to manage and operate water systems 

effectively, thereby preparing them to assume 

administrative and supervisory responsibilities 

similar to those of state programs. 

Capacity 

development 

increases funding opportunities. Systems 

with capacity may be eligible for low-or no-cost 

loans from the state in which the system is located, 

or for direct grants from their EPA regional office 

and other federal programs. 

A poorly operated system, or a system with physical deficiencies, may allow bacteria, 

This may cause serious health problems for customers. A sysAlso, a system with capacity will be able to comply with the drinking water regulations, 

By developing their 
For More Information, Contact: 

U.S. EPA Headquarters 

American Indian Environmental Office (202) 260-7939 http://www.epa.gov/indian/ 

Office of Ground Water & Drinking Water (202) 564-3750 http://www.epa.gov/safewater/ 

Safe Drinking Water Hotline: 1-800-426-4791 or e-mail: hotline-sdwa@epa.gov 

U.S. EPA Regional Tribal Capacity Development Coordinators 

Region 1 (617) 918-1111 http://www.epa.gov/region01/eco/drinkwater/index.html


Region 2 (212) 637-3600 http://www.epa.gov/region02/nations/indian1.htm


Region 4 (404) 562-9900 http://www.epa.gov/region4/ead/GovPartners/tribal.htm


Region 5 (312) 353-2000 http://www.epa.gov/r5water/sdw/dwwedo4.htm


Region 6 (214) 665-6444 http://www.epa.gov/region06/6xa/tribal.htm


Region 7 (913) 551-7030 http://www.epa.gov/region07/programs/wwpd/dwgwhome/dwgw.html


Region 8 (303) 312-6312 http://www.epa.gov/region08/tribes


Region 9 (415) 744-1500 http://www.epa.gov/region09/cross_pr/indian/index.html


Region 10 (206) 553-1200 http://yosemite.epa.gov/r10/tribal.NSF/webpage/tribal+office+homepage?opendocument


Additional Contacts 

Administration of Native Americans (202) 690-7776 http://www.acf.dhhs.gov/programs/ana/ 

Bureau of Indian Affairs (202) 208-3710 http://www.doi.gov/bureau-indian-affairs.html 

Bureau of Reclamation (202) 513-0615 http://www.usbr.gov/main/programs/native-am.html 

Indian Health Service (301) 443-3593 http://www.ihs.gov/ 

National Rural Water Association (800) 332-8715 http://www.nrwa.org/ 

Rural Community Assistance Program (202) 408-1273 http://www.rcap.org 

Rural Utilities Services (202) 720-9540 http://www.rurdev.usda.gov/rus/index.html