Periurbanization, Public Finance, and Local Governance of the Environment: Lessons from Small-Scale Water Suppliers in Gresik, Indonesia

Abstract

As cities in the developing world transition from agricultural to industrial societies, periurban settlement has placed tremendous burdens on the state to provide adequate water infrastructure and to regulate environmental pollution. In the absence of formal municipal systems, community-level forms of water supply have proliferated in periurban areas. The case of Indonesia illustrates the extent of such organizations, and in particular the capacities that neighborhood-level organizations have for financing public infrastructures and managing such investments for community development. The findings suggest that such informal institutions may form the backbone of a broader understanding of development alternatives in periurban areas.