Public sector capital. Includes grants, loans, subsidies, and other sources of public capital or financial support that can be provided to the water system. When it reduces total costs, public-sector capital can improve affordability. Income, employment, participation in welfare or other assistance programs, and other socioeconomic indicators measure the general ability of households in the water system's service territory to pay for water service. Publicly-owned systems may be supported by water users, as well as through community resources and public capital.
Municipal governments can assist their own systems with direct subsidies or financing.
However, local communities generally do not provide assistance to privately-owned systems. Small communities often lack the resources or expertise needed to obtain private credit, and even when they do have such capability, it is difficult for them to compete with larger communities. Figures 3a and 3b. Potential Resources for Publicly and Privately-Owned Community Water Systems. This is especially true of public or non-profit NTNC systems.