Research On The Regulation System Of Water Supply In Urban Public Service

Urban water supply industry is a typical natural monopoly industry and needs tobe regulated by the government, namely the management and constraint on marketaccess, fee level and quality of service, and the market mechanism deficiencies willbe compensated by state intervention in the economy. Due to the economies of scale,economies of scope, costs of weak growth, cost and sunk and other characteristics,the market can not be simply relied on to meet the needs of the communityinfrastructure and the public interest, therefore the natural monopoly must beregulated by the government, and that carries out important means to address thefailure of the market mechanism. At present, China’s urban water supply industry is ina low standard of basic infrastructure due to lack of coordination of variousregulatory policies, and it has to some extent affected the economy development andnormal life of residents. To achieve sustained and healthy development of urban watersupply industry, government regulation must protect the city water supply to meetgrowing demand as a precondition, so as to meet the growing urban economic andsocial development needs. Regulatory policy should focus on, for example, how toimprove cost recovery mechanism, the clear responsibility of the government andenterprises, deepening infrastructure investment and financing system, promotingsocial capital investment in water supply facilities, the raw water protection, watersupply and wastewater treatment capacity. This paper emphasizes the analysis ofurban water supply industry problems due to the government regulation dislocation,and aims to build a reasonable system of government regulation of urban watersupply industry with foreign experience.