Water Pricing in Chile: Decentralization and Market Reforms

Guillermo Donoso
  • January 2015, Springer Science + Business Media
  • DOI: 10.1007/978-3-319-16465-6_5

Water pricing in Chile

What is it about?

This chapter focuses on recent pricing experiences in the urban residential and rural sectors. Over the last 30 years, the Chilean govern-ment has successfully incorporated private participation in the water and sanitation sector and implemented a regulatory framework that has contributed to cost recov-ery and affordability of the reform. The service offered has greatly improved in quality and coverage reaching, in 2013, 99.9 % of urban population. National cover-age of sewage treatment has signifi cantly increased from 17 % in 1999 to 99.8 % in 2013. This chapter also presents an overview of Chile’s national Rural Potable Water (APR) program, which has reached almost 100 % coverage in semiconcentrated rural areas. Unlike urban service providers, the rural water-supply and sanitation sector has not been subject to regulation like urban services.

Why is it important?

The water sector in Chile underwent major changes as a result of decentralization and market reforms. Over the last 30 years, the Chilean government has success-fully incorporated private participation in the urban water and sanitation sector and implemented a regulatory framework that has contributed to cost recovery and affordability of the reform. Thus, Chile’s policy of providing water-supply and sanitation (WSS) services through privatized regional and local water companies has been a notable success.

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http://dx.doi.org/10.1007/978-3-319-16465-6_5

The following have contributed to this page: Guillermo Donoso