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Business Models for Decentralized Drinking Water Services in Urban and Peri-Urban Areas

Access to clean drinking water is a fundamental human right, yet many urban and peri-urban areas struggle to provide this service. While rural water access has improved, urban areas face stagnation or declining access to safe water services due to rapid urbanization, environmental changes, and social disparities. With urban populations in the global South expected to double and concerns about water quality from centralized systems in high-income countries, adaptable and resilient water service solutions are urgently needed. Decentralized systems are gaining attention for their adaptability, cost-effectiveness, and resilience, offering flexible alternatives to large treatment plants and aiming to provide safe, clean water at the household or community level. These systems improve local responsiveness, reduce inequalities, and enhance resilience by utilizing alternative water sources like rainwater harvesting. Innovative service delivery models are essential to bridge gaps, increase local responsiveness, and benefit vulnerable groups. Business model innovation is crucial for adopting and sustaining decentralized water technologies, especially in urban and developing contexts. Private companies are increasingly stepping in to provide decentralized drinking water services, often in partnership with government-led projects or community-managed initiatives, filling gaps where public institutions fall short. This thesis investigates private entities as viable alternatives for decentralized drinking water service provision, considering the complex landscape of urban water provision and the challenges centralized systems face. Using a mixed-methods approach, including a systematic literature review and interviews with eight organizations, the study explores how private companies operate and engage with communities to improve water services. Findings show that private companies use innovative business models, such as Social Enterprise and Product-Service System Models, to balance profitability with social and environmental responsibilities, though this raises concerns about the commodification of water. The thesis emphasizes the importance of subsidies, innovative financing, and government support to ensure affordable and accessible water services, especially in low-income and water-stressed regions. It stresses the need for supportive policy frameworks to promote decentralized services in different income-level countries. The adaptability of private companies to diverse customer bases and their ability to secure funding from various sources are crucial for the scalability and sustainability of their services. The thesis concludes that private companies play a vital role in bridging the service provision gap, but their success depends on innovation, stakeholder engagement, and supportive policies. It highlights the importance of balancing centralized and decentralized systems to ensure sustainable and resilient water services and uphold the human right to clean drinking water. The thesis contributes to the discourse on sustainable urban water management, underlining the potential of private companies to improve the accessibility and sustainability of drinking water services while emphasizing the need for ethical considerations in commodifying essential resources.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-531163
Date January 2024
CreatorsDuran Romero, Daniela Adalia
PublisherUppsala universitet, Institutionen för geovetenskaper
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess
RelationExamensarbete vid Institutionen för geovetenskaper, 1650-6553 ; 2024/23

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