Abstract

The outcome of the 2011 Italian referendum on the scope of franchise bidding in local public services will exert a substantial bearing on the albeit slow opening of water sector in the years to come. The paper presents and discusses several findings which shed light on the long-lasting weakness of the sector. By looking at some of the undertakers basic economic features, investments in infrastructure, quality of supply and price-cost dynamics, it advocates the need for a clear-cut overhauling of the sector which is to be set within an independent regulatory framework.