The production potential of an enterprise is one of the generalized indicators that investors look for. Before the war, Ukraine had 14,000 municipal enterprises, mostly providing services of general economic interest: water, heat and gas supply, building management, household waste management, and public transportation. These enterprises are monopolists in their sectors of operation, but the level of investment in fixed assets and development is extremely low. Realizing the actuality of this problem, the object of this study is water supply and sewerage utilities. The purpose of the article is to assess the production potential based on the performance concept. The objectives of the study were to identify markers that affect the production potential of an enterprise based on the performance concept and to calculate the parameters of the linear regression equation in order to determine the statistically significant factors that affect the value of the production potential of an enterprise. Based on the analysis of literature sources, the article determines the feasibility of assessing the production potential of municipal enterprises by the following indicators: return on assets, return on equity, return on net profit, debt ratios and current liquidity ratios. After analyzing the available statistical data on municipal enterprises located in regional centers, it was determined that enterprises in this sector have low profitability. In particular, the average return on assets over the past five years was -2.93%, and the return on equity was on average -3.47%. The model of statistical data analysis showed that return on assets, return on equity, and marginal income have a positive and significant impact on profit growth, and, therefore, have a positive impact on the production potential of these enterprises. The growth of debt ratios and current liquidity ratios has a significant negative impact on the growth of profits of municipal property companies, and has a negative impact on the production potential of water supply and sewerage. The article concludes that tariffs for water supply and sewerage services should be set according to the «cost plus» model, which will allow for the renewal of fixed assets and the realization of the production potential of water supply and sewerage utilities.