Abstract
Water and wastewater utility managers are encountering a host of financial challenges beyond their control. From the recent economic recession to the health of financial markets, aging infrastructure, and a changing climate, complex issues threaten utilities' financial health. Many water utilities are responding to address these challenges. To date, few studies have examined how widespread innovative financial practices are among the nation's public water systems and how these practices are helping utilities cope with mounting financial challenges. This article examines the major financial challenges facing water utilities and reviews the current state of the US water sector's financial management practices with the aim of strengthening policymakers' understanding of the drivers and impacts of available financial mechanisms. Utility financial practices are evaluated on the basis of their ability to minimize risk and create financial resilience in utility financial management.
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