Local Water Utility Reform: Case Studies from Iwate Prefecture in Northern Japan

In common with local government systems in other developed countries, Japanese local government confronts numerous acute problems, including the ongoing sustainability of its local waterworks. Municipally-owned Japanese water utilities face a host of difficulties, including falling demand for water, decreased revenue, expensive infrastructure renewal and a shortage of skilled staff, which are compounded by the relatively small size of water utilities. This article seeks to contribute to the literature on Japanese water sector reform by examining the remedial efforts undertaken by two local water utilities to alleviate their circumstances in Iwate prefecture in northern Japan. Various public policy implications are drawn from these case studies.