Economic analysis of public water supply in the Piscataqua river watershed

The southeastern portion of New Hampshire is experiencing a rapid growth in population. Many small semi-rural communities are becoming suburban complexes with mushrooming residential developments. These communities are, as a consequence, confronted with expanding demands for municipal services. The situation creates an urgent need for planning efforts that will aid decision makers in the choice among alternative systems for providing these municipal services.

The authors were aware of these needs and were interested in the economic problem involved. Little guidance is to be found in the literature, since most approaches are based on the technical engineering aspects of design and construction. It became apparent that little had been done to combine engineering design and economic evaluation in a comprehensive approach.

The intent of this paper was to analyze the water supply system problem from an economic viewpoint. The study reviews the characteristics of water supply systems and identifies the economic problems associated with them and is, then, primarily an exploratory study conducted on a theoretical basis. It is not a research study in the sense of conducting an analysis or analyses of empirical data.

This exploratory study will hopefully provide a basis for the conduct of future research and the development of some quantitative procedures that will be useful to planners and decision makers.