Reconsidering privatisation in the governance of water in Spain

Abstract

Spain liberalised the governance of municipal services after implementation of law 7/1985 of 2 April 1985, which regulates local government. Since then, many Spanish municipalities have chosen to privatise their urban water service. However, complete privatisation of the water service is now being questioned. The number of water services becoming completely privatised is decreasing and some local governments have changed their initial decisions and reverted to public management. This article explores why privatisation in Spain is being reconsidered. The process of privatisation of water services in Spanish cities and the causes of the re-governance process that some local governments have undertaken are reviewed. With reference to the option of privatisation, different management alternatives chosen by local governments are also considered, as new forms of governance such as mixed public–private partnerships and associationism are steadily acquiring an important role.