Regionalization Advances U.S. Water Infrastructure and Economic Resilience

U.S. water infrastructure faces significant challenges including aging pipes, overwhelmed sewers, and fragmented governance across thousands of local systems, impacting environmental safety, public health, and economic stability. Regionalization—strategic collaborations among geographically proximate water systems—is gaining traction as a multifaceted solution to fiscal constraints, regulatory compliance, operational inefficiencies, and technical and leadership capacity shortfalls, particularly in smaller and economically disadvantaged communities.

Despite recent federal investments such as $58 billion from the Infrastructure Investment and Jobs Act and Inflation Reduction Act, an estimated $744 billion in infrastructure improvements remains necessary over coming decades, compounded by emerging contaminants and risks of funding cuts. The nation's water sector is characterized by over 50,000 community water systems, many serving limited populations, and over 16,000 wastewater treatment plants, with assets distributed without regard to jurisdictional boundaries, complicating management and modernization efforts. Economies of scale remain elusive for small utilities, which often cannot assume additional debt or maintain sustainable revenues, threatening service affordability and quality that underpin economic development. Regionalization approaches vary widely, from informal cooperation and shared services to mergers and public-private partnerships, reflecting diverse local priorities and concerns over ownership, particularly public-private dynamics. Effective regional governance models require intentional, community-led efforts with attention to social equity and inclusiveness, supported by federal agencies such as the EPA and USDA providing guidance and technical assistance. Beyond addressing infrastructure deficits, water utilities can act as economic anchors through employing local workforces, fostering strategic partnerships, and enabling broader economic development initiatives, as evidenced by collaborative efforts like BAYWORK and regional planning in states including California, Kentucky, and New Mexico.

These partnerships also tackle pressing workforce shortages through coordinated training and recruitment strategies. Successful regionalization depends on careful leadership, clear objectives, and cooperative frameworks that align water management with sustainable economic growth and community resilience. The complexity of water infrastructure challenges necessitates nuanced, locally tailored solutions combining fiscal prudence, regulatory compliance, and innovative governance rather than one-size-fits-all mandates, highlighting the critical importance of collective action in securing the future of U.S. water systems and the communities they serve.