World Bank2014-08-192014-08-192006-01https://hdl.handle.net/10986/19472The scope of this paper is limited to how donors and governments can stimulate owners to realize the potential of water utilities in serving the urban poor. As survey data indicates that reliable water utility service is a key aspect of serving the poor, this paper focuses on how Indonesian water utilities (PDAMs) can increase access to the poor. It also touches on tariff reform because the reluctance of PDAMs to connect the poor at an artificially low tariff creates a hindrance to overall reform. However, this discussion does not offer a comprehensive analysis or solutions to PDAM or tariff reforms, topics that have already been covered by several excellent studies. This study draws heavily on recent Indonesian survey data, while offering insights and first-hand accounts from those who have successfully managed water utilities in serving Indonesia's poor. Several water utility Diruts (Direktur Utama or a utility's Managing Director) have been able to serve the people by turning around weak utilities and guiding them to profitability. Their solutions on PDAM management appear in the annexes and apply mainly to PDAM reform, which is needed for sustainable service to the poor. This paper is more concerned with what can be done in the short term to move toward a system based on more reformed utilities that are led by motivated owners serving the poor. In general, while rural settlements are built up and maintained around water sources such as shallow wells, the quick spread of urban pollution due to crowding quickly eliminates clean water sources in those areas. Therefore, it is generally cheaper to find water in settled rural areas than in cities. Furthermore, the significant difference in Indonesia between the sometimes artificially low price of piped water and the high price people are willing to pay for it often results in serious social inequalities, including economic rents, illegal connections, water strongmen, water smuggling from social tariff to commercial tariff areas, and water theft.en-USCC BY 3.0 IGOACCESS TO WATERADEQUATE WATERAFFORDABLE WATERALTERNATIVE WATERALTERNATIVE WATER SOURCESALTERNATIVE WATER SUPPLIESBILL COLLECTIONBULK WATERCENTRAL GOVERNMENTCIVIL SOCIETYCIVIL SOCIETY INVOLVEMENTCLEAN WATERCOMMUNITY DEVELOPMENTCOMMUNITY GROUPCOMMUNITY GROUPSCOMMUNITY INVOLVEMENTCOMMUNITY WATERCONNECTION CHARGESCONNECTION FEECONNECTION FEESCONSTRAINED WATER SUPPLY DEVELOPMENTCONSTRUCTIONCONSUMER OVERSIGHTCONSUMPTION BLOCKSCOST OF WATERCOST RECOVERYCOST SAVINGSCROSS-SUBSIDIESCUBIC METERCUBIC METERSDEEP WELLSDEMAND MANAGEMENTDISTRIBUTION SYSTEMDISTRIBUTION SYSTEMSDRINKING WATERFIXED CHARGEFREE WATERGOOD WATER SUPPLYHAND PUMPHANDPUMPSHOUSE CONNECTIONHOUSE CONNECTIONSHOUSE WATER CONNECTIONHOUSE WATER CONNECTIONSHOUSEHOLD CONNECTIONHOUSEHOLD CONNECTIONSHOUSEHOLDSHYGIENEINTERMITTENT WATER SUPPLYIRRIGATIONIRRIGATION WATERLAKESLOCAL AUTHORITIESLOCAL COMMUNITYLOCAL WATERLOCAL WATER UTILITIESLOCALITYLOW WATERLOW-INCOME HOUSEHOLDSMAINTENANCE COSTSMANAGEMENT OF WATERMANAGEMENT OF WATER SUPPLYMANAGEMENT OF WATER SUPPLY OPERATIONSMARGINAL AREASMETER READERSMETERINGMONTHLY BILLSMONTHLY HOUSEHOLD WATERMONTHLY WATERMONTHLY WATER BILLMUNICIPAL WATERNATIONAL WATERNATURAL RESOURCESNUMBER OF CONNECTIONSOPERATORSOWNERSHIP OF WATERPAYMENT OF CONNECTION FEESPIPEPIPED WATERPIPESPOOR URBAN HOUSEHOLDSPRESSUREPRICE OF WATERPROJECT MANAGEMENTPROVISION OF WATERPUBLIC COMPANYPUBLIC TAPPUBLIC UTILITYPUBLIC WATERPUBLIC WATER UTILITIESPUBLIC WORKSQUALITY OF SERVICEQUALITY WATERQUANTITIES OF WATERRAINWATERRAINWATER COLLECTIONRAINWATER HARVESTINGRAINWATER STORAGERAW WATERREGIONAL DEVELOPMENTREGULATORY BODIESREGULATORY FRAMEWORKRELIABLE WATER SUPPLYRIVERSRUNNING WATERRURAL SETTLEMENTSSANITATIONSANITATION STRATEGYSERVICE STANDARDSSHALLOW WELLSSMALL SCALE PROVIDERSSMALL-SCALE WATERSMALL-SCALE WATER PROVIDERSSMALLER TOWNSSOURCES OF WATERSQUATTERSSTAKEHOLDER INVOLVEMENTSTANDPIPE WATERSUPPLY WATERTARIFF ADJUSTMENTTARIFF ADJUSTMENTSTARIFF COLLECTIONTARIFF INCREASETARIFF POLICYTARIFF RATETARIFF RATESTARIFF REFORMTARIFF SETTINGTARIFF STRUCTURETOWNTOWNSTREATMENT PLANTURBAN AREAURBAN AREASURBAN POLLUTIONURBAN WATERUSE OF WATERUSER CHARGESUSERSUTILITY MANAGEMENTUTILITY OPERATIONSWASHINGWASTEWATERWASTEWATER RECYCLINGWATER AVAILABILITYWATER BILLSWATER BODIESWATER COMPANIESWATER COMPANYWATER CONNECTIONSWATER CONSUMPTIONWATER DEVELOPMENTWATER FLOWSWATER GOVERNANCEWATER INFRASTRUCTUREWATER LOSSESWATER PRICESWATER PROVIDERSWATER QUALITYWATER RESOURCESWATER RESOURCES MANAGEMENTWATER SECTORWATER SECTOR DEVELOPMENTWATER SECTOR REFORMWATER SERVICEWATER SERVICESWATER SOURCESWATER STRATEGYWATER SUBSIDIESWATER SUPPLIESWATER SUPPLYWATER SUPPLY ASSETSWATER SUPPLY CAPACITYWATER SUPPLY SITUATIONWATER SUPPLY SYSTEMWATER SUPPLY SYSTEMSWATER TABLEWATER TARIFFWATER TARIFFSWATER USEWATER UTILITIESWATER UTILITYWATER VENDORSWATERSHEDWATERSHED MANAGEMENTWELLS10.1596/19472