Decorporatization of a municipal water utility: a case study from Italy

In Italy, debate over management forms of water utilities has continued for about thirty years, with legislation that periodically oscillates between the involvement of the private sector and keeping water management in public hands. Political and scientific discourse has focused considerable attention on ownership structure, following the ideological dichotomy of “public or private” rather than on models of governance, management, and performance. The literature finds divergent conclusions, which highlights the key role of country's institutional context in identifying the best management forms. The present work aims at providing policy and regulatory implications of decorporatization in Italy following the 2011 popular referendum through a case study of the first of its kind involving the ABC utility based in Naples. In particular, the role of primary stakeholders in the process is highlighted.