Water Affordability Guide

Affordability Guide

Module 3

Frontline Community Issues

Consolidation and Regionalization in Rural Communities

For frontline communities that have never been connected to centralized drinking water or sewer systems, the path to health and safety may be to connect to those grids through consolidation and/or regionalization, creating a combined system serving multiple jurisdictions.

Consolidation and Regionalization Defined

Consolidation: Two or more utilities merge and operate under the same governance, management, and financial structures.

Regionalization: Instead of going through a merger, utilities instead pool resources, buying power, technical expertise, shared billing services, operator services, or specialized equipment, to gain economies of scale a single utility could not achieve on its own.

Organizations like Southeast Rural Community Assistance Project help rural communities find the best solutions to fit their needs and values. Through its Technical Assistance program, SERCAP works with communities to evaluate when consolidation is an appropriate solution. For example, in the Village of Hobson, Virginia, residents were without adequate indoor plumbing. With SERCAP’s support, Hobson was able to build new homes and connect them to an adequate water system operated by a neighboring water utility. To learn more about Hobson’s story, watch the video below.

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Policies That Elevate Frontline Community Issues

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Federal Grants and Navigation Assistance for Frontline Communities

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