Abstract
This article discusses two factors that seem to be dominant in the future of the water industry. One is the prospect of sharply rising costs for major increments in basic water supply, and the other is the impact of population growth. The first is already a near reality for Southern California; it may be expected to become increasingly apparent in other parts of the United States. Although a longterm rising supply cost for water has many implications, particularly with respect to the rationality of present‐day water utility rate structures, its significance is discussed in this article as the increase in capital investment that it will necessitate.
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