This monopoly is coercively imposed on those who don't have a share of land, unless the natural benefits, manifested as rent, are equally shared. Small-scale ownership would be less efficient. Natural monopolies are typically utilities such as water, electricity, and natural gas. It would be very costly to build a second set of water and sewerage pipes in a city. Water and gas delivery service has a high fixed cost and a low variable cost.
Electricity is now being deregulated, so the generators of electric power can now compete.
But the infrastructure, the wires that carry the electricity, usually remain a natural monopoly, and the various companies send their electricity through the same grid. To prevent utilities from exploiting their monopolies with high prices, they are regulated by government. Typically, they are allowed a fixed percentage of profit above cost. But this type of regulation can lead to inefficient high costs, since the monopoly is guaranteed a profit. To get around this problem, some municipalities and government districts own the local utility and provide the service at cost.