WATER SCARCE CITIES Thriving in a Finite World About the Water Global Practice Launched in 2014, the World Bank Group’s Water Global Practice brings together financing, knowledge, and implementation in one platform. By combining the Bank’s global knowledge with country investments, this model generates more firepower for transformational solutions to help countries grow sustainably. Please visit us at www.worldbank.org/water or follow us on Twitter @WorldBankWater. WATER SCARCE  CITIES Thriving in a Finite World © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Please cite the work as follows: World Bank. 2018. “Water Scarce Cities: Thriving in a Finite World.” World Bank, Washington, DC. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Cover design: Taylor Crisdale, JESS3. Contents Preface v Acknowledgments vii Abbreviations ix Chapter 1  Introduction 1 References 4 Chapter 2  Shifting the Paradigm 5 Emerging Threats to Urban Water Security 5 Principles for Resilient Urban Water Scarcity Management 9 Notes 12 References 12 Chapter 3  Demystifying the Solutions 13 Demand Management and Infrastructure Efficiency 13 Building on Conventional Approaches: Innovative Surface and Groundwater Management 19 Nonconventional Water Resources: Waste, Storm, Sea 23 Cooperation with Other Users 33 Adaptive Design and Operations 37 Notes 39 References 40 Chapter 4  Cross-Cutting Considerations 41 Technology Is Not the Major Concern 42 Importance of Inclusion and Good Communication 42 Good Economics Is Key 43 Diversifying Sector Financing Strategies 45 Sector Institutions Need to Adapt to These New Challenges 46 Integration Is a Critical Enabler 48 Notes 50 References 50 Chapter 5  Conclusion 51 Water Scarce Cities: Thriving in a Finite World iii Figures 2.1. ­ Streamflow into Perth’s Reservoirs, 1911–2016 8 ­ 2.2. Water Resources in Several Water Scarce Cities, by Type 11 3.1. Average Nonrevenue Water in 167 Urban WSS Utilities Aggregated in 18 Water Scarce Countries and Regions 15 3.2. Residential Water Consumption in 111 Water Scarce Cities 15 3.3. Residential Customer Bill Sample Comparison 19 3.4. Aquifer Recharge to Protect Coastal Aquifers from Saline Intrusion and Increase Yield 20 3.5. Water Banking Schemes 22 3.6. Virtual Transfer Scheme 23 3.7. Comparison of Unit Cost of Stormwater Capture Projects to Their Scale 26 3.8. Reduction in Reverse Osmosis Power Consumption in Perth, Australia, 1970–2010 32 3.9. Unit Cost Rates of Seawater Reverse Osmosis Desalination Plants on the Mediterranean Sea, 2016 32 3.10. Drought Threshold Values and Water Source Mix, by Threshold, Barcelona, 1980–2016 38 4.1. ­­ Total Cost of Water Production for Various Solutions 44 Maps 1.1. Case Studies and Other Key City Experiences in This Report 3 3.1. Overview of Rural to Urban Water Reallocation Projects, 2017 35 Photographs 2.1. Sitting Near a Well Collecting Water 6 3.1. Awareness Campaign in Las Vegas 17 3.2. Inflatable Rubber Dams Used to Maximize Groundwater Infiltration, Orange County, CA 21 3.3. Green Infrastructure, Tucson, Arizona 25 3.4. Wastewater Treatment and Reuse for Irrigation, Cyprus 28 3.5. Three Generations of Desalination Plants in Malta 31 3.6. Desalination Plant in Almería, Spain 34 iv Water Scarce Cities: Thriving in a Finite World Preface In 2013, the Republic of Yemen was in an unprece- targeted data-based awareness-raising, changes in dented situation. Because of the National Dialogue land  use planning, or stringently enforced water-­ initiative, a reconciliation process backed by the consumption regulations, with many lessons learned United Nations, there was hope that Yemenis could from a decade of trial and error. build a better future after the turbulence that had Water managers in Tucson swept the region a couple of years earlier. This hope, immediately understood Hilal’s The World Bank saw an however, was tempered by anxiety that the country predicament, having pulled opportunity to connect was on the verge of chaos. In Sana’a, the capital, back from a similar crisis in the cities and utilities that Mayor Abdul-Qader Hilal, in particular, was actively 1980s, when their aquifer have taken innovative concerned about the future of the city, especially its ­ vanished as the city rapidly measures to manage their water supply. Hilal was keenly aware that his rain-­ expanded. Together, these water resources more deprived city was on the brink of running dry. Its water scarce cities could help effectively. centuries’-old aquifer was overpumped and dwin- ensure that water measures dling. In addition, its water utility was underper- support inclusive economic growth, environmental forming and underserving his citizens, supplying progress, and societal well-being. At the 2015 Spring only 48 percent of its 2.2 million inhabitants, while Meetings, the Bank hosted a number of leading voices the rest turned to water tankers—spending at least from water scarce cities, including Ms. Pat Mulroy, five times more for water in peacetime, and up to 10 who led the Las Vegas Valley Water District and the time more in periods of crisis. Hilal turned to the Southern Nevada Water Authority for over 15 years; World Bank with a simple question: surely Sana’a is and Mr. Muesse Kazapua, the mayor of water-stressed not the only water scarce city in the world; are other Windhoek, Namibia, and others. Hilal was invited as cities facing or have faced similar challenges, and the guest of honor of the 2015 event. Unfortunately, he which could he learn from? was unable to leave Sana’a due to conflict that had erupted in the Republic of Yemen in 2015, and he trag- Around the same time, water specialists from the World ically lost his life in a bombing. Bank were looking to U.S. cities that coped with water shortages. In the extremely dry southwest United Yet Hilal’s legacy as a water resource innovator lives States, cities faced with an alarming decrease in aquifer on. The Bank recognized that there was a wealth of levels embarked on a decades-long comprehensive experience across the world that was not necessarily strategy to secure their water future. Las Vegas, accessible to mostly decentralized and locally focused Nevada, placed local utilities under a single authority water managers, especially in the very urban and very to leverage their bargaining power and secure addi- dry Middle East North Africa (MENA) region. The Bank tional water credits through innovative market and identified and compiled as part of the present study regulatory mechanisms. Tucson, Arizona, recharged its experiences from water scarce cities (as recent events aquifers with its unused Colorado River allocation, in  Rome, Italy, and Cape Town, South Africa, have while developing water reclamation to materially offset proven)1 that could inspire further innovation and municipal nondrinking uses. Both cities developed change in the region. This quickly led to the establish- aggressive demand-management actions, such as ment of a vibrant global network of utility managers, Water Scarce Cities: Thriving in a Finite World v government officials, academics, and more. The Bank Lebanon (Beirut,  Tripoli), Jordan, Oman, and many used this network to facilitate regularly scheduled others. This report tells the story of the Water Scarce knowledge exchange events (Marseille, France, Cities Initiative. December 2016; Casablanca, Morocco, May 2017; Beirut,  Lebanon, September 2017) to initiate and Note ­support a new kind of dialogue with governments and 1. Both cities have experienced, over the past year, significant water utilities in  Morocco (Al  Hoceima, Marrakesh), supply shortages as a result of extensive drought events. vi Water Scarce Cities: Thriving in a Finite World Acknowledgments This report was prepared by a team of water specialists introduction), Joost Buurman, Cecilia Tortajada, and led by Stephane Dahan and comprising Clementine Prof. Asit K. Biswas (Singapore), Kara Nelson (San Stip, Manuel Marino, Richard Abdulnour, Amal Talbi, Francisco), Madelyn Glickfeld (Los Angeles), Meleesa and Lauren Core. Naughton (Malta), Mike Muller (Windhoek), Nour Khater (Orange County, California), Nuria Hernandez- The peer reviewers were Gregory Browder, Richard Mora (Murcia, Spain), Philippe Marin (Cyprus and Damania, Asmita Tiwari, and Tony Wong (Cooperative Israel), Richard Luthy (Kern County, California), Srinidhi Research Center for Water Sensitive Cities). This work Sampath Kumar (literature review) and Subhash Verma benefited from overall guidance by Steven Schonberger (Jaipur). Collaboration with a broad range of institu- and support from many colleagues within the World tional partners and other stakeholders in the water sec- Bank. tor has been essential throughout the preparation of Contributions from many experts and partners have this study, with a special mention to ReNUWIt and been critical in the preparation of the case studies: UCLA for their technical guidance and support. Australian Water Partnership (Perth), Emily Virginia Bell (Tucson), Florian Heiser (Fortaleza), Ghazi Abdul Finally, the team is grateful to the Water Partnership Razzaq Abu Rumman (Amman), Gregory Pierce (West Program (WPP) for its support to the achievement of Basin, California, and Southwest United States chapter this work. Water Scarce Cities: Thriving in a Finite World vii Abbreviations AWBA Arizona Water Banking Authority CAPEX capital expenditure DPR direct potable reuse GCM general circulation models IDP internally displaced persons IPR indirect potable reuse IRWD Irvine Ranch Water Department MCT Mancomunidad de Canales del Taibilla O&M operations and maintenance OCSD Orange County Sanitation District OCWD Orange County Water District PPP public-private partnerships PUB Public Utilities Board SDCWA San Diego County Water Authority SNWA Southern Nevada Water Authority W&S water and sanitation WSC Water Scarce Cities WSS water supply and sanitation Water Scarce Cities: Thriving in a Finite World ix Ouarzazate, Morocco, at the edge of the Sahara Desert. © Arne Hoel/World Bank. Chapter 1 Introduction Water scarce cities face unprecedented challenges: individually and collectively stressing water supplies. rapid urbanization and growth have put pressure on Climate shocks are taking a toll on many urban centers dwindling resources, and cities are further stressed by and amplifying the unpredictability of freshwater climate change and conflict shocks. Most operate under availability. In addition, demands are piling higher unsustainable water management practices, based on among competing users. In some regions, urban linear, engineering-based approaches, yet government water  insecurity is exacerbated due to increasing planners and others are unaware how this situation numbers of prolonged droughts. Repeated water short- could lead to major water shortages. Therefore, this ages create perceptions of government failure, deepen report, using information from the Water Scarce Cities social inequalities, and intensify existing tensions. Initiative, attempts to compile innovative approaches— In some regions, the turmoil of conflict and forced dis- based on cities’ successfully responses to water scar- placement further weakens management of scarce city—to inspire a new kind of urban water security. water resources. Securing urban water supply is crucial, since the number of urban dwellers living with ­ Water sits at the center of a constellation of unprece- seasonable water shortages is expected to grow from dented challenges facing global cities. Changes such as close to 500 million people in 2000 to 1.9 billion in rapid urbanization, economic growth, increasing pop- 2050 (McDonald et al. 2011). ulations, and evolving consumption patterns are Water Scarce Cities: Thriving in a Finite World 1 Unsustainable water resources management has led to urban spaces and their inhabitants, especially youth the depletion of strategic sources in many of the world’s and women. Water shortages can have far-ranging con- major water basins. Water authorities can share cau- sequences in the prosperity of urban areas, causing tionary tales of water competition and c ­ onflict, contam- higher incidences of diarrheal diseases, including on inated water sources due to rampant pollution, and young children, and harming economic activities. unsustainable consumption. Most common are exam- (World Bank 2016; Sadoff et al. 2017; Damania et al. ples of linear, engineering-based approaches in which 2017; Sadoff, Borgomeo, and de Waal 2017). wastewater and stormwater are swiftly channeled out Extreme water scarcity in the Middle East and North of cities into receiving waterways, which lead to Africa triggered a progressive exploration of a new mind- depleted groundwater resources due to excessive rates set across progressive utilities around the world. In the of abstraction without adequate replenishment. As Republic of Yemen, for example, city officials in Sanaa local sources are depleted, utilities reach further away, were acutely aware of the risks the city faced if it contin- increasing their dependence on imported waters out- ued overdrawing its aquifer at alarming rates, and sought ing their capacity to side of their control, and reduc­ new ways of engaging the population to raise awareness respond to resource shocks. From  Malta to Namibia, to the extreme scarcity of water. Governments in and from India to Brazil, water authorities have faced Morocco and Lebanon looked to the World Bank for sup- either the prospect of zero-sum water, augmenting port after traditional approaches seemed to push them urban water supplies from finite sources to the detri- toward increasingly costly investment programs—with ment of other users, or they have embraced alternative no sustainable solution to their structural water deficit. water resource management solutions. The Water Scarce Cities Initiative has set out to com- Although many cities understand the strategic impor- pile, connect, and share these breakthrough projects tance of sound water management, many urban water for resource-strapped cities in extremely water scarce utilities remain unaware of these challenges, mired in lin- areas. For example, in the Southwest United States, ear and narrow engineering approaches. Often, city water Tucson, Arizona, Las Vegas, Nevada, and Orange management models include limited use of sustainabil- County, California have pioneered sophisticated solu- ity considerations, inadequate coordination with multi- tions across t ­ raditional silos of the water cycle. ple users, lost opportunities to develop local and more Singapore and Namibia have experimented with pota- economical resources, and disconnection with the ble reuse of  wastewater, and Australia has pushed watershed. In addition, problems with poor water qual- through ­ integrated, institutional innovations. ity, low service coverage, and crumbling infrastructure loom. As a result, many cities underperform in their The Water Scarce Cities Initiative intends to magnify the efforts to increase water supplies under scarcity. In São successes of those urban areas and serve as a connective Paolo and Rome, for example, unprecedented water thread between global cities, their policy makers and, shortages have led managers to question the foundations most important, the practitioners. It first seeks to shift of conventional, linear water management models. predominant, outdated, mostly linear, and siloed thought patterns that sometimes lead to disjointed and Fast-growing cities increase pressure on scarce water costly investment decisions without necessarily provid- resources. All urban dwellers are dependent on a ing protection against depleting resources or an increas- safe  and reliable source of water for even the most ingly adversarial climate. It then demystifies innovative basic  needs. If inadequately managed, these water urban water practices, including ­ managing conventional challenges have the capacity to negatively impact resources such as aquifers more effectively, tapping new quality of life, public health, and inclusive growth for 2 Water Scarce Cities: Thriving in a Finite World and nonconventional resources such as wastewater, con- The report aims to promote successes, outline challenges trolling demand, or engaging differently (such as show- and principles, and extract key lessons learned for future ing how the practices were done and what can be learned efforts. It shares the experiences of from them). The goal is to engage meaningfully with 19 water scarce cities and territo- Some cities and states diverse water scarce cities to facilitate concrete engage- ries from five continents, which have beaten water ment, product development, and technical assistance. represent a diversity of situations scarcity odds with and development levels, as identi- new, ­integrated urban Water scarcity solutions that may be enigmatic or fied in map  1.1. The selection of water management ap- unfamiliar are illuminated through first-hand accounts case studies is based on the proaches. In sometimes to highlight paradigm shifts, emerging principles, and expected ­ relevance and diversity surprising and often demystify innovative approaches. This report offers a on cities’ experience, and to a ­ innovative ways, diverse first look at new pathways that cities, states, and lesser extent reflecting geographic urban spaces have been regions facing water scarcity can explore, as well and income-level diversity. achieving inclusive and as  recommendations for how they can unleash sustainable urban water This report describes the their  potential through integrated and systemwide ­services. ­emerging challenges and related approaches that include technology, economic consid- water management principles that form a new para- erations, and inclusive outreach. digm (“Shifting the Paradigm”); presents and seeks The Water Scarce Cities Initiative has developed this evi- to demystify key water scarcity management solu- based advocacy piece to guide water security dence-​ tions (“Demystifying the Solutions”); and concludes approaches with concrete examples and experiences. with cross-cutting considerations ­ relevant to policy MAP 1.1. Case Studies and Other Key City Experiences in This Report EUROP ROPE EUROPE NORTH NOR N RT OR AMERICA A TH AM CA MER CA ASIA Ca C a ali al California alif l lifo fornia if r i ornia ia a((5 5) ) (5) Murcia Mur rc a C CY YPPRR US CYPRUS Laas Las Ve V s Vegas Veg ega eg a as gass Beirut Be rut Be son cs ucson u Tucs Tucsonon on Marrakesh MALT LTAISRAEL TA MALTA SR S RA R AEL ATLANTIC Amman A mma Amm ann J Jaipur ap Ja u ur pur MEXICO ME EX XICO X CO O OCEAN ND A INDIA AFRICA Fortaleza Singapore Sin S nga ngapo ngapo gapor or o p re re SOUTH AMERICA AMERIC AM A MERICA M ERICA R INDIAN Lima OCEAN Windhoek k BASELINE WATER STRESS A AU S STRALIA ST TR RA USTRAL A AUSTRALIA Durban LOW (<10%) Perth ert erth Per Pe th PACIFIC LOW TO MEDIUM OCEAN (10%–20%) Melbourne elbourne Me ne MEDIUM TO HIGH (20%–40%) HIGH (40%–80%) EXTREMELY HIGH (>80%) 0 2,000 4,000 Kilometers ARID & LOW WATER USE IBRD 43761 | JUNE 2018 NO DATA Source: World Resources Institute, Aqueduct Water Stress Projections Data, April 2015. Note: Map depicts baseline water stress. Black text denotes cities in case studies for report. Brown text denotes other key locations. Water Scarce Cities: Thriving in a Finite World 3 makers of water scarce ­ c ities ­ (“Cross-Cutting References Considerations”). The report is not an exhaustive Damania, R., S. Desbureaux, M. Hyland, A. Islam, S. Moore, A. Rodella, study of the issues, nor does it provide answers and J.  Russ, and E. Zaveri. 2017. Uncharted Waters: The New Economics of tools to address the challenges that water scarce Water Scarcity and Variability. Washington, DC: World Bank. ­ c ities may face. Rather, it is an advocacy piece to McDonald, R., P. Green, D. Balk, B. M. Fekete, C. Revenga, M. Todd, and M. Montgomery. 2011. “Urban Growth, Climate Change, and Freshwater raise awareness around the need to shift the  typi- Availability.” PNAS 108 (15): 6312–17. cal  way  urban water  has been managed and  to Sadoff, C. W., E. Borgomeo, and D. de Waal. 2017. “Turbulent Waters: share emerging principles and solutions that may Pursuing Water Security in Fragile Contexts”. Washington, DC: World Bank. improve urban water supply security in water scarce World Bank. 2016. “High and Dry: Climate Change, Water, and the cities. Economy.” World Bank, Washington, DC.   4 Water Scarce Cities: Thriving in a Finite World Water level at historical low in 2016 in Nevada’s Lake Mead supplying close to 20 million people. Source: U.S. Bureau of Reclamation. Chapter 2 Shifting the Paradigm In an era of looming water crises, water scarce utilities changing population patterns, including large must shift the paradigm from linear urban water p opulation displacement, drive sharp increases ­ ­ practices focused on achieving service standards in a in  urban water demand, as witnessed across the financially sustainable way to an integrated water ­ Middle East  and North Africa region, including management mindset that can help water supply and J o rd a n . M a r r a ke s h , Mo ro c c o, a n d A m m a n , ­ sanitation (WSS) service providers secure reliable and Windhoek, Namibia, Malta, and Tucson, Arizona, supplies. This report argues that sustainable water ­ offer cautionary tales of progressive depletion and WSS service providers, policy makers, and practi- deterioration of water resources availability and tioners should look at their mandate and responsibili- q uality. Perth, Australia, is actively facing down ­ ties in such a new ­ light. Diverse experiences of the drastic changes in hydrology due to climate urban water management industry in water scarcity c hange. Large water importers in Orange County, ­ contexts1 presented here can provide valuable insights California, and in Singapore are  constantly into water security triumphs and ­ challenges. exposed to shifting priorities of their  historic water ­ p roviders. Murcia, Spain, and Las Vegas, Nevada, illustrate how utilities have to maintain Emerging Threats to Urban Water Security appropriate political leverage  within a basin to Water scarce utilities must deal with emerging p riority secure their allocations, despite  being ­ threats to their water ­ s ecurity. Increasing and ­u sers. Water Scarce Cities: Thriving in a Finite World 5 PHOTOGRAPH 2.1. Sitting Near a Well Collecting Water address these fundamental institutional and opera- issues. These questions are further complicated tional ­ by five emerging challenges that increasingly affect many cities around the world, are among the most threatening events to water supply security, and require new ways of thinking: • Sharp increases in urban water demand • Depletion and deterioration of availability and quality of resources ­ • Climate change • Changing priorities in historical sources • Competition with other users In the following sections, each emerging challenge is illustrated by examples of how the cities studied for this report have addressed ­ them. Sharp Increases in Urban Water Demand Increasing and changing population patterns are an important worldwide reality that most WSS providers are ­facing. Marrakech and Amman provide stark illustrations of how social, political, and economic dynamics can exacerbate already tense water situations and lead to Source: Tomas Sennett/World Bank. demand. In Lebanon, drastic changes in urban water ­ The complicated world of urban water supply is Jordan, and Iraq, major population influxes of refugees marked by challenges such as aging infrastructure, and internally displaced persons (IDPs) strain already evolving service standards, and urban ­ expansion. To ­ities. In such context of fragility, water water scarce c address these challenges, “business as usual” for WSS insecurity can precipitate violence and conflicts (Sadoff, service providers is generally framed by the following Borgomeo, and de Waal 2017; World Bank 2016). questions: Marrakech • How much water is allocated to the city and in which In the water scarce city of Marrakech—located 100 quality? miles inland on the foothills of the Atlas Mountains— • How to produce and distribute safe drinking water, sudden increases in water demand outgrew traditional and how to collect, treat, and discharge wastewater availability. Over the past few decades, resource ­ at the lowest cost? Marrakech has become a luxury holiday destination Unpacking conventional problems in the urban WSS with over 10 million tourists visiting every ­year. As part industry is ­ complex. If a city’s water services are of the booming tourism industry, a mainstay of the caught in a vicious cycle combining poor services, Moroccan economy, proposals for more than a dozen insufficient cost recovery, obsolete infrastructure, and golf resort development projects posed a difficult inadequate sector governance, then the priority is to equation. Increasingly water-strapped, water balance ­ 6 Water Scarce Cities: Thriving in a Finite World Marrakech decided to depart from the “business as experiences multiyear periods of very low rainfall, usual” approach of setting its sights on distant water making it even more difficult to secure safe and reli- demands. Instead, the city sources to meet escalating ­ able water s ­ources. Confronted with concrete and developed an untapped and innovative water resource immediate threats to its economic development, (wastewater) to meet the touristic boom in a water- approaches. Windhoek had to rethink water supply ­ manner. This decision also allowed the city to safe ­ The WSS service providers brought to this corner of reduce its discharge of treated wastewater to the the African continent innovative solutions, such as receiving ­environment. extensive reuse of treated wastewater and advanced aquifers. management of its ­ Amman Jordan is one of the most water scarce countries in Malta existence, with constant water stress and historically The water scarcity story of Malta echoes that of ­ vailability. Amman, its largest city, has poor water a respects. The island of Malta, Windhoek in multiple ­ experienced a sharp population increase due to half a located in the heart of the Mediterranean, is one of refugees. The city struggles to provide safe and million ­ ­ urope. With its the most water-stressed countries in E reliable water supplies; yet despite the diligent efforts semiarid climate, Malta lacks (a) significant perennial of WSS service practitioners and agencies, the gap surface water bodies, (b) summer rainfall, and (c) between supply and demand for water resources for exploitable surface water sources, all compounded the approximately 700,000 subscribers continues to use. In addi- by increasing demands and escalating ­ increase. While local water conservation and reuse ­ tion, Malta’s groundwater resources have been measures have helped mitigate the water deficit, severely depleted due to years of overexploitation Jordan is planning a major regional desalination and and their quality reduced by decades of pollution water conveyance infrastructure to overcome this from nitrates and high salinity from seawater exceptional ­challenge. ­ intrusion. Water supply challenges have persisted history. As a response, the throughout the island’s ­ Progressive Depletion and Deterioration of Water Maltese WSS service provider has demonstrated the Resources Availability and Quality importance of water use efficiency and resource The progressive depletion and deterioration of avail- diversification including desalination and stormwa- able resources beyond usefulness is one of the most ter capture when most conventional solutions are common new challenges facing many c ­ ities. Two cases ­exhausted. illustrate the experiences and efficient response to this situation: Windhoek and ­ Malta. Drastic Changes in Hydrology Due to Climate Change Windhoek Traditional WSS service providers have found them- Challenged by a climate characterized by extremes, selves at unanticipated setbacks in their development WSS service providers in Windhoek are familiar with trajectory due to increasing climate change–related insecurity. With increasing water demands water ­ stresses. shocks and ­ from rapid population growth and escalating water use from competing stakeholder groups, and a deplet- Perth ing aquifer (the traditional water source), the Perth enjoys a Mediterranean climate with a popula- Namibian water sector has faced unique water chal- tion of more than 2 million people. Its location sub- lenges over the past ­ decades. In addition, Windhoek jects it to an ongoing drying effect of declining rainfall Water Scarce Cities: Thriving in a Finite World 7 FIGURE ­2 .1. Streamflow into Perth’s Reservoirs, 1911–2016 1000 900 800 700 600 Mm3 500 400 300 200 100 0 1911 1931 1951 1971 1991 2011 1911–74 1975–2000 2001–09 2010–16 Annual total Avg: 338 mm3 Avg: 173 mm3 Avg: 92 mm3 Avg: 22 mm3 (https://www.watercorporation.com.au/water-supply/rainfall-and-dams/streamflow/streamflowhistorical). Source: Perth Water Corporation website ­ ­ echarge. Perth has had a and reduced groundwater r Orange County 20 percent reduction in annual rainfall as compared to Orange County, with more than 3 million inhabitants the pre-1970 average, severely impacting its tradi- in the arid southern edge of California, has relied since tional sources of water (see figure 2 ­ .1). Further drastic the 1960s on water transfers from Northern California reductions were experienced in the early 2000s and ­ eeds. When these to satisfy a large part of its water n early 2010s, reducing streamflow into the city’s reser- historic source providers began to reconsider their voir to just 12 percent of pre-1970s’ l ­ evels. In a climate allocations due to local emerging priorities, this that is hotter and dryer than ever before, WSS and dependence on distant water resources became a water resources management agencies have been ­ecurity. In response, Orange major risk  to water s actively confronting the challenges approaches County developed local programs to manage ground- including policy responses, cooperation at different water and stormwater, made possible due to changing levels of government, and nontechnical innovation in ­ technology and cultural drivers not possible half a water ­management. ­century ­ago. Vulnerability When Historic Water Source Singapore Provider Shifts Priorities In the early 1960s, the tropical city-state of Singapore Another vulnerability many cities face is when historic signed two agreements with Johor, Malaysia, to ensure priorities. Orange County and water providers shift ­ access to water ­resources. One of those agreements ended Singapore, for example, had to confront this issue with in 2011, and the other, which currently covers more than decisions. innovative responses and policy ­ ­061. half of Singapore’s water demand, expires in 2 8 Water Scarce Cities: Thriving in a Finite World The  dependency of Singapore on Johor for its water ­ rinciples. The Successful experiences point to five key p supply has provided Malaysia with political leverage; in priority must be to shift from a culture of abundant water. Driven the past, there have been tensions over ­ ­ emand. Utilities should then water to rationalized d by strong political leadership and a deep understanding hedge against a variety of risks through diversification of the island’s reliance on water for its survival, resources. This includes securing local sources of their ­ Singapore is undertaking a profound transformation of such as strategic aquifers, and increasing climate its water sector and diversification of old and new resilience by exploring desalination or wastewater ­ 2060. sources, aimed at full self-sufficiency by ­ reclamation—without precluding external recourses ­ needed. These principles come together in adap- when ­ Power Play with Competitive Water Basin Users tive design and operations to cope with uncertainty The regional approach to water supply in Murcia illus- and variability, as demonstrated by advanced trates shifting balances of power with competitive County. approaches in Orange ­ users in water ­ basins. Despite often enjoying legal sta- Given present and future water challenges, and even tus as a priority user, cities such as Marcia can be sub- more so in fragile or conflict-affected countries, urban ject to significant pressure from other politically WSS service providers now must creatively adapt powerful water ­ users. urban water management approaches to changing environmental conditions and socioeconomic ­ shifts. Murcia However, traditional WSS service providers may not Murcia is on the Mediterranean coast of southeast- have the culture and capacity to monitor, anticipate, ern Spain with a population of over 1 m illion. ­.5 ­ and manage water insecurity, especially when its root The  irrigation sector plays a leading role in the boundaries. To address these causes lie far beyond city ­ hydropolitics. Water allocation from the region’s ­ unchartered challenges, WSS service providers’ first primary local river has historically been granted to and most decisive step may be to internalize a broader irrigators, prompting Murcia to search for water set of guiding questions: away. In a con- sources more than 200 kilometers ­ text of increased water stress, the irrigation lobby • How much water is needed for the city to thrive? has influenced the river basin authority to secure How little water could it still thrive with? more water rights, leaving the urban sector with no • Are the current sources being used at a sustainable ­ ptions. option but to seek alternative water supply o level? Are the current water allocations reliable on The city and other local urban centers responded by the long term, for how long? setting up an institution, the Mancomunidad de • Is urban water supply resilient to climate shocks?2 Canales del Taibilla, to help them garner political and financial support for infrastructure develop- • Do we consider these risks in our designs and ment and negotiations with irrigators under the have clear plans to anticipate and react to dry auspices of the river basin ­ a gency. shocks? • Are the mechanisms that govern water allocation to Principles for Resilient Urban Water the city adequate and reliable? Is urban water supply Scarcity Management vulnerable to increased pressure from competitive users? Water scarce utilities have to creatively adapt their practices despite a strong legacy of linear approaches In the face of the challenges faced by water scarce and seemingly little leverage in complex water ­systems. c ities today, embracing these questions represents a ­ Water Scarce Cities: Thriving in a Finite World 9 shift in WSS service providers’ water p ­ aradigm. This have brought their water consumption down to below report draws from relevant experiences from around 100 liters per capita per day without reducing service the world to describe how these questions were suc- quality, risking health, or negative reactions from cessfully addressed by water scarce cities and to c itizens. Efficiency measures further ensure a their ­ extract several underlying principles to their resources. Places city is not wasting already scarce ­ ­ strategies. Overarching these principles is the critical like Singapore and Los Angeles, California, which need for WSS service providers to have data on the depend on financially and politically expensive fluxes of water inflows and outflows of a city and imported water, have reduced their nonrevenue understanding their relative ­ v ulnerabilities. Such ­ ercent. Politically, cities must also water to lows of 5 p documentation of the urban water metabolism sets show good faith: the city of Fortaleza, Brazil, was up the key principles3 described in the following asked by the river basin committee to show signifi- ­paragraphs. cant reductions in residential water demand and non- revenue water before being allocated any water from other ­users. Reducing City’s Dependence on Abundant Water When cities facing water scarcity seek new water Hedging against Risks through Diversification resources, demand management and improving sys- To bolster their resilience to shocks, cities must build tem efficiency should be two of the potential sources diversified and dynamic water resource portfolios to be ­ tapped. Demand can be reduced through and make the best of available water sources through improvements in system efficiency and the reduction fit-for-purpose approaches that consider the needs of of losses, by incentivizing customers to reduce ­ se. For instance, use of surface each type of water u ­ consumption, and changing consumption patterns water and groundwater gives Windhoek flexibility or  the source of water based on fit-for-purpose since these sources respond to stress on different considerations. Droughts have provided key opportu- ­ scales. Singapore’s four national taps and time ­ nities for such reductions, as shown by California’s Murcia’s multiple sources provide other good exam- 25  percent statewide municipal water consumption ples of balanced portfolios in which sources have dif- decrease between 2014 and 2016, and Windhoek’s ferent risk and cost ­ profiles. Singapore’s water supply ability to conserve 70 liters per capita per day (from system relies on a combine local catchment water, 200 liters per capita per day to 130 liters per capita per imported water, desalination, and wastewater reuse day, respectively) during peri- with the aim to become independent of imported ods of severe ­ r estrictions. water. In the Colorado River basin, Las Vegas has ­ However, these efforts must go developed a robust portfolio that includes banked Some cities have beyond drought response. ­ resources in three different states, which can be managed to grow and Zaragoza, Spain, is an exemplar ­ hortages. Figure 2 tapped if the city faces future s ­ .2 reduce residential water for demand management, with illustrates the diversity of water resources portfolios consumption at the same residential water use at adopted by a selection of water scarce cities covered time. Since 1995, Singapore ­ 97  liters per capita per day in ­tudy. This static representation does not in this s has reduced residential water use from 172 liters 2015 (overall consumption reflect the contribution of the invisible resource, per capita per day to 148 down 30 percent from 2000 namely demand management, in cities such as Perth liters per capita per day ­ levels). Other cities such as Murcia. Nor does it illustrate the role that water or ­ despite a tripling of its gross Málaga, Spain, Leipzig, reclamation for irrigation can play, unleashing addi- domestic product ­ (GDP). Germany, or Tallinn, Estonia, tional surface water or groundwater allocations for 10 Water Scarce Cities: Thriving in a Finite World FIGURE ­2 .2. Water Resources in Several Water Scarce Cities, by Type Malta Perth Orange county Amman Singapore Murcia/MCT Windhoek Fortaleza Jaipur 0 20 40 60 80 100 Percent Local resouces Nonlocal resouces Local groundwater Treated wastewater reuse Interbasin transfer GW Local surface Rainwater harvesting/ Interbasin transfer Desalination stormwater capture Surface studies. Source: Based on World Bank case ­ groundwater. Note: MCT = Mancomunidad de Canales del Taibilla; GW = ­ ­ alta). Economic models, the city (as in Amman and M from desalination and is available no matter the such as the ones developed by the Cooperative conditions. Windhoek has responded to its drought ­ Research Centre for Water Sensitive Cities (CRCWSC)4 arid climate and extreme interannual variability can help identify the optimal mix of resources in the ­ astewater. First through investing in reclaimed w portfolio, based on city resources and associated implemented in 1968, it now supplies over 30 percent ­uncertainties. ­ onpotable). In the south- of its water use (potable and n western United States, wastewater reuse provides a Relying on Solutions that Are Not Vulnerable to resource that is, to some extent, climate-­ independent Climate Change and is increasingly incorporated in cities’ water portfo- In the face of climate uncertainty, cities can supple- lios for potable and nonpotable u ­ ses. Orange County ment other (local) sources with those whose availabil- recharges its aquifer with highly treated wastewater, ity is not subject to climate c ­ onditions. Due to overdraft thus improving groundwater quality and buffering low and limited local recharge, Malta faced severe saliniza- years. The West Basin Municipal Water District rainfall ­ tion of its aquifers in 1980, which led the water scarce provides reclaimed wastewater to local parks and island to invest in its desalination c ­ apacity. Today, up industries, which purchase it from the water district to 60 percent of Malta’s normal consumption can come treatment. based on a menu of different levels of ­ Water Scarce Cities: Thriving in a Finite World 11 Ring Fencing Water Systems from External response into their water systems, so that they are Competition equipped to deal with shortage situations before they Because cities often share their water resources with escalate. While Perth draws about half of its potable ­ various stakeholders and sectors, their portfolios must supply from desalinated water, it leverages its network include sources they can control without competition of dams to store excess water from desalination plants from other ­ users. A starting point can be to view cities for use in higher demand periods or lower rainfall years, as water supply catchments—recognizing that water providing a fallback without increasing production resources can, and should, be harnessed within the years. Orange County manages excessively during dry ­ city boundary, including groundwater,  reclaimed its aquifer as a buffer in dry periods, leveraging storm- water, rainwater, and ­ stormwater. Local, city-specific water, imported water, and reclaimed water for a diverse aquifers can be managed at the city level, which recharge ­ strategy. In turn, water managers set allow- decreases vulnerability to other users’ ­ demands. In ances for their clients to pump water from the aquifer Windhoek and Perth, managed aquifer recharge is according to groundwater ­ levels. However, all these envisaged t o s t a b i l i z e a n d replenish groundwater principles cannot truly yield resilience if the city or autonomy. Tucson taps levels while increasing ­ county does not carry out drought planning to ensure another generally underused local source: there are planned responses—both structural and stormwater. Through rainwater harvesting infrastruc- ­ ­cenarios. In Spain, both Murcia social—to different s ture that mimics natural systems to promote infiltra- and Barcelona have defined drought thresholds associ- tion, Tucson water managers ensure water can be ated to different responses, such as changing the mix of collected and filtered for reuse, providing a locally funding. sources used, restrictions, and emergency ­ controlled source for the ­ ­ city. Portfolio diversification with local sources has provided a similar respite for Notes Singapore and San Diego, California, helping to free 1. This report does not consider any strict definition of a water scarce them from imported water in high demand from other city. It is broadly understood that it includes urban areas of any ­ users. In times of surplus, water banking schemes can ­ size subject to arid climate conditions and very limited freshwater ­availability per ­capita. allow a city to retain access to its full water rights while 2. WSS service providers increasingly need to consider resilience to a shortages. While cities should har- planning for future ­ broad array of shocks, including resilience to natural disasters, earth- ness local sources within their span of control, they attacks. quakes, floods, and terrorist ­ may also need to rely on external sources that involve 3. Such fluxes overview framework can be open-ended to facilitate large infrastructures or enter politically sensitive ongoing evolution in contemporary resources management within a city. Some cities have, for example, extended this framework to ­ users. water-sharing arrangements between ­ nexus. include water-energy nexus and water-food ­ Coping with Uncertainty and Variability through ­ ttps://watersensitivecities.org​ 4. See Water Sensitive Cities’ website: h .au/content/hedging-supply-risks-an-optimal-urban ​ - water​ Adaptive Design and Operations -portfolio/. Many threats to urban water security identified in the previous section include unpredictability, stemming References from political, economic, and—most acutely—climate Ray, P. A., and C. M. Brown. 2015. Confronting Climate Uncertainty in ­ factors. Infrastructure development programs that can Water Resources Planning and Project Design: The Decision Tree perform well across a wide range of potential future Framework. Washington, DC: World Bank. conditions may be more advisable than solutions that Sadoff, C. W., E. Borgomeo, and D. de Waal. 2017. Turbulent Waters: are optimal in expected conditions but ineffective in Pursuing Water Security in Fragile Contexts. Washington, DC: World Bank. conditions deviating from the expected (Ray and Brown World Bank. 2016. “High and Dry: Climate Change, Water, and the 2015). Cities must therefore build scenario analysis and ­ Economy.” World Bank, Washington, DC. 12 Water Scarce Cities: Thriving in a Finite World Piped water services brought to a periurban neighborhood near Meknès, Morocco. © Arne Hoel/World Bank. Chapter 3 Demystifying the Solutions To operationalize the principles outlined in previous require innovations at the policy, institutional, and chapters, water supply and sanitation (WSS) service regulatory levels and demand extensive consultation ­ providers can draw from a toolbox of technical, institu- and communication efforts. The solutions are comple- tional and regulatory measures aiming at (a) stimulat- mentary and can be integrated for optimal results, as ing water use efficiency and conservation practices; (b) many of the case studies have shown. making the best of existing surface and groundwater resources through innovative management schemes; Demand Management and Infrastructure Efficiency (c) developing nonconventional water sources; collaborating with other water users for an optimal (d) ­ Rationalizing water demand should target two allocation of available resources; and (e) adopting potential problems: inefficient water networks that adaptive design and operation approaches. The follow- waste part of the water transported into leakages, ing chapter offers examples and lessons from the and profligate water consumption. Utilities in implementation of such measures across water scarce Singapore and Malta use demand management as a cities identified through case studies prepared for this pillar of their water security and have developed paper. These solutions are far more than technical in highly effective leakage reduction operations. Spain, nature. Their adoption and implementation often Australia, and California have demonstrated that Water Scarce Cities: Thriving in a Finite World 13 conjunctive conservation measures such as rules and are limited. Following an exchange between the restrictions, water pricing mechanisms, education, Malta  Water Corporation and the  Beirut Mount outreach can effectively dent high water and public ­ Lebanon Water Establishment, a pilot program in consumption levels when appropriately designed Beirut led to massive water savings and achievement and implemented. of 24/7 water service.1 This pilot is now being expanded by the water establishment through a Improving Water System Efficiency performance-based contract, which should bring ­ Efficiency improves water supply reliability—in additional utility expertise and allow the entire city ­ addition to reducing costs—through technological, to participate in a few years. A similar experience in infrastructure, and regulatory improvements. In Jaipur, India, proved that not only 24/7 supply can be conventional systems, efficiency measures that achieved but also that nonrevenue water (here in focus on reducing network leakages can stretch a particular physical losses) can be drastically reduced finite water allocation to serve more users and avoid with limited resources. the need to expand the system or negotiate a larger water allocation. In the Spanish city of Zaragoza, Promoting Water Conservation investments in network renovation and infrastruc- As for network efficiency, inferring achievable water ture improvements reduced raw water use by almost conservation targets can be challenging, but bench- 20 percent between 2001 and 2006. In Murcia, Spain, marking with other cities can help, at least the residen- the WSS service provider has reduced leak detection tial dimension of water consumption. Out of 111 water and repair time to 2.5 days through hydraulic zon- scarce cities covered by the International Benchmarking ing and microsectorization. Nonrevenue water is Network (IBNET) or included in the present study, a now under 14 percent, compared to 40 percent majority shows residential consumption levels in 1975. between 65 liters per capita per day and 125 per capita per day. Outliers include countries at both ends of the A system’s economic level of leakages, below which economic development spectrum, such as Singapore the marginal cost of reducing leakages outweighs and the Republic of Yemen. They also include less pre- associated economic benefits, is highly context-­ dictable cities in Mexico, Pakistan, or Namibia, as dependent. A long, iterative process is needed to iden- shown in figure 3.2. tify its value and clarify the real scope for water savings. Nevertheless, in most cases, leakage reduc- Conservation measures are typically mandatory or tion targets could be set well below 20 percent. voluntary. Mandatory measures are rules and restric- Considering the current levels of nonrevenue water of tions that water users must adhere to by law or be 167 WSS service providers in water scarce areas as penalized, such as withdrawal limits and consumption shown in figure 3.1 (and even if those figures often rates. Voluntary measures encourage water users to include a share of commercial losses), maximizing reduce their water usage but do not legally bind network efficiency appears as a priority option to them,  and include education schemes, media bridge the gap between water supply and demand. campaigns, and monetary incentives. The following ­ sections introduce these different types of instruments To be implemented successfully, such programs and examples of their application. require technical and operational know-how, which knowledge exchanges between utilities have proven Rules and restrictions tend to be more effective tools helpful to build. For  example, in Lebanon, water in managing short-term supply shortages because savings are critical in summer when water resources they prompt immediate actions from customers. 14 Water Scarce Cities: Thriving in a Finite World FIGURE 3.1. Average Nonrevenue Water in 167 Urban WSS Utilities Aggregated in 18 Water Scarce Countries and Regions Turkey (Central) Afghanistan Brazil (Nordeste) India (Northwest) Peru Bahrain Malta Pakistan Mexico Jordan West Bank and Gaza Egypt, Arab Rep. Yemen Morocco Tunisia Cyprus Namibia Singapore 0 10 20 30 40 50 60 Percent Sources: IBNET; World Bank. Note: These figures include both physical and commercial losses. WSS = water supply and sanitation. FIGURE 3.2. Residential Water Consumption in 111 Water Scarce Cities 300 250 Liters per capita per day 200 150 (10) (1) 100 (1) (5) (3) 50 (2) (1) (3) (3) (20) (17) (3) (17) (13) (12) 0 n o ta re s a p. a a y co e) an en za ru i isi di ke a ic ib Re st al po Ga oc st rd m ex In p n r m M de ki Tu Ye Cy Tu Jo ga or b M d Na Pa ra or an M n ,A Si (N k an pt il az y tB Eg Br es W (Number of utlities) 75th percentile Median value (mean if number = 2) 25th percentile Source: IBNET. Water Scarce Cities: Thriving in a Finite World 15 In  California, in response to a drought, Governor concerns from the nursery, reticulation, and to ­ Brown mandated that the state achieve 25  percent turf-growing industries on the potential damages of conservation by 2016. The State Water Resources garden watering restrictions, the Water Corporation Control Board then allocated conservation responsi- worked with these actors to devise a two day per week bility among the  state’s water agencies to total roster for garden watering by sprinkler systems. The 25 ­percent statewide conservation in municipal areas. roster system provided significant water savings while Despite perceptions that the distribution of responsi- preventing more severe restrictions, without damaging bility was not always fair, results were impressive gardens and lawns. It was accepted by the government with a cumulative 24.5 percent statewide reduction and the customers and implemented as a “good water- achieved compared to 2013 consumption levels. ing practice.” In Melbourne, an extensive public cam- However, now that the mandatory conservation has paign based on detailed behavioral science principles setting been lifted and responsibilities for goal-­ helped halve per capita consumption compared to its has been shifted back to the water agencies, there is early 1990s level (Melbourne Water 2017). debate about whether these achievements will be Incentives provide flexibility in that they invite the maintained over time. Other examples, such as in community to participate in conservation efforts Australia,2 have shown that the elasticity of social through modifications in their own space and habits. norms have been broken and that a lower water con- In Las Vegas, Nevada, the successful Water Efficient sumption could be sustained following restriction. Technologies program provides financial incentives One key to having the community accept of restric- to  commercial and multifamily property owners to tion programs and maintaining the responsible agen- install water-efficient devices that save at least cy’s standing with customers is the demonstration of 250,000 gallons3 annually (for example, through agency fairness and equity. In Brisbane, Australia, high-efficiency toilets and showers, lawn replace- where the community was suffering from restriction ment  for sport fields, or cooling system retrofits). fatigue after two years of water restrictions, residents Arizona’s Tucson Water approaches the problem by expressed that they could not save any more water. In offering households tax incentives and rebates to addition, they were under the impression that busi- install rainwater-harvesting infrastructure in their nesses, not residents, were responsible for the largest homes. Customers are encouraged to shift part of their consumption of water in the region. Due to this lack outdoor water use to from potable to rainwater, which of belief that an individual could make a difference, offers a better fit for that type of water use. In opinion of the water agency was quite low when it California, drought-proof landscaping is now incen- proposed further restrictions. Regular communica- tivized by most water districts through rebates on tion about the ways in which lawn replacements with gravel and succulents, as well the drought affected the city as plant donations. In the most successful and what customers could do Water pricing is a very effective management tool to cases, such as in about it helped alleviate nega- reduce water consumption. Numerous surveys and Melbourne and Perth, tive perceptions and tensions. Australia, well-designed studies have shown the negative relationship between restriction programs are In Perth, restrictions on price and consumption, with increases in the price of eventually recognized by fixed  sprinkler systems have water by 10 percent typically leading to declines in the community as good shown good results as part water consumption by less than 10 percent (Grafton water use practices rather of  emergency contingency 2010). Some studies, however, have suggested that than as constraints. ­ planning. However, in response demand may be more responsive to price in the long 16 Water Scarce Cities: Thriving in a Finite World run, but that better short-term results in an emerging PHOTOGRAPH 3.1. Awareness Campaign in Las Vegas water crisis could be achieved with restrictions (O’Dea and Cooper 2008). In Zaragoza, Spain, an increasing block tariff binomial structure is applied to communicate the value of water to their customers. For the first 6 m3, the tariff is 50 percent below production costs, while for the high- est consumption blocks it is five times higher than the lowest blocks. In addition, efficient water use is encouraged by reducing by 10 percent the price of water for those families that reduce their annual con- sumption by more than 10 percent. One of the common arguments against using increas- ing block tariffs is that they impose a disproportionate burden on households with many members or on several households that share a common connection. ­ To avoid equity issues, especially for larger house- holds, Singapore introduced a four-tier approach, in which families with over two members have a higher volume in each tier, with rates for all tiers remaining the same. Similarly, Malta’s first block volume is based on the number of persons registered as living in the Source: Las Vegas Valley Water District. household, with the second block being charged at a tariff five times larger than the first. highest tiers’ charges. In general, pricing signals In Irvine, California, the Irvine Ranch Water such as tiered-rate structures seem more efficient Department (IRWD) has separated commodity than traditional conservation measures (such as a (40 percent) and fixed (60 percent) service charges4 state conservation mandate). to ensure that even when water demand declines, IRWD still recovers its costs. The commodity service Such seasonal changes can help better reflect water charge is assessed through a customized monthly availability during the year, but may have limited water budget for each customer account based on impact on long-term behavior change. In addition, several factors, including landscape square footage changes in water prices must be communicated to of the property, number of residents, daily weather, consumers with some frequency, thus increasing and evapotranspiration. Water is sold to customers transaction cost and the potential for confusion. under a four-tiered structure adapted to their During periods of drought, a drought surcharge can be monthly water budget. As a result of the strong eco- applied, as was done in California in the recent drought nomic signal provided with the rate structure and and is foreseen in South Africa. In Los Angeles, the proactive customer outreach, water consump- California, shortage-year rates are implemented, tion has decreased significantly, and fewer than during which the switch point between the first and 3 percent of residential customers currently pay the second tiers is reduced to encourage additional water Water Scarce Cities: Thriving in a Finite World 17 conservation and to offset any revenue losses result- supported this collaborative approach to the develop- ing from lower consumption periods. ment, approval. and implementation of water-saving policies. Because of their detailed knowledge of the Education and public outreach local water use portfolio, local agencies seem to be are a central part of any conser- Another approach to more effective and better placed than regional or state vation campaign in a water convey water scarcity to entities to implement conservation measures. customers is seasonal scarce urban area: public com- pricing, whereby regular munication efforts help ensure Water bills are another important communication tool increases and decreases in customers of all ages, as shown to the customer for the success of any pricing mecha- tariffs constantly remind on photograph 3.1, understand nism in promoting water conservation. They bring consumers of the need for the implications of water use in attention to the link between water consumption and conservation, compared a dry area and secure commu- monthly expenditure, and they are a regular platform to constant conservation nity buy-in. They can make that links the service provider to customers. Zaragoza charges year-round. more draconian conservation uses the bill to detail the efficiency-promoting tariff, measures seem socially respon- and employs persuasive graphs and images to convey sible, and they may lead to behavioral changes that information on consumption levels and past trends can result in long-term reductions. Furthermore, hav- and to encourage savings. Figure 3.3 shows the differ- ing an ongoing and evolving outreach effort with ence between bills for efficient and inefficient water stakeholders provides a communication channel use in IRWD, which enables a quick assessment of the about conservation needs and decisions, a way to benefits of conservation to customers. communicate to customers what they can do, receive feedback, and source ideas for new programs from Water authorities can use drought and dry periods stakeholders. as policy windows to implement new water conser- vation strategies. In Cyprus and Barcelona, Spain, the In Las Vegas, Nevada, a survey conducted prior to image of tanker boats delivering water to the harbors implementing conservation measures has found in times of water shortage are burned in the public’s that people overwhelmingly supported the program, mind as symbols of drought impacts. Crises are and  that their main concern was that these changes important triggers for behavior change since they be rolled out in an equitable manner. The Las Vegas instill a sense of urgency and realization in citizens’ water utility, Southern Nevada Water Authority minds. Since perception of the problem’s importance (SNWA), hosts the annual WaterSmart Innovations is essential for customers to actively want to conserve Conference and Exposition—the world’s largest water water, cities should not let a good crisis “go to waste.” conservation–focused conference—which connects Dynamic pricing (seasonal adjustments) can be a entrepreneurs to water agencies and potential valuable tool for regulating demand during periods of partners. Through local partnerships, SNWA encour- ­ high deficit. For instance, it is suggested (Grafton ages businesses and other stakeholders to promote 2010) that Australia could have saved large sums of water conservation in the sector.5 These platforms money wasted in idle desalination plants if it had promote regular exchange between the SNWA and used flexible pricing strategies that reflect supply local water users and inform the evolution of their conditions. water conservation measures. Similarly, Zaragoza supported the creation of an association to connect One challenge of using such policy windows is that once industry players, researchers, and administrations to customers perceive that the situation has improved, promote efficient water use. Stakeholders have their efforts may relax and consumption levels could 18 Water Scarce Cities: Thriving in a Finite World FIGURE 3.3. Residential Customer Bill Sample Comparison Bill # 1 - The Inef icient Customer (55 m3) Bill # 2 - The Ef icient Customer (30 m3) Dates of Service Meter Reading Units Used Dates of Service Meter Reading Units Used 7/10/17 – 8/09/17 3550–3605 55 m3 7/10/17 – 8/09/17 3550–3580 30 m3 USAGE - LOW VOLUME 14 $0.48 $6.72 USAGE - LOW VOLUME 14 $0.48 $6.72 USAGE - BASE RATE 16 $0.60 $9.60 USAGE - BASE RATE 16 $0.60 $9.60 USAGE - INEFFICIENT 11 $1.44 $15.84 USAGE - INEFFICIENT 0 $1.44 $0.00 USAGE - WASTEFUL 14 $4.26 $59.64 USAGE - WASTEFUL 0 $4.26 $0.00 WATER SERVICE CHARGE $10.30 WATER SERVICE CHARGE $10.30 SEWER SERVICE CHARGE $25.75 SEWER SERVICE CHARGE $25.75 Your water budget for this bill 30 m3 Your water budget for this bill 30 m3 Bill calculation based on 1214 m2 Bill calculation based on 1214 m2 TOTAL WATER & SEWER CHARGES $127.85 TOTAL WATER & SEWER CHARGES $52.37 Source: Irvine Ranch Water Department. Note: For a residential customer using 30 m3 of water, the average monthly increase in the water and sewer bill is $1.05. increase again. Windhoek, Namibia, officials have Building on Conventional Approaches: expressed that maintaining some of the savings realized Innovative Surface and Groundwater during periods of intensive restrictions has been diffi- Management cult, especially when followed by a period of good rains. Conventional systems draw from the traditional Their approach includes constant media communica- water sources of surface water and groundwater. tion with customers to share the understanding that These are often seasonal and highly climate-­ drought conditions continue despite short rain periods. dependent, and many show declining outputs over Through wide political and social mobilization, they time. While cities move on to other resources once hope to achieve a lower overall average consumption, in these are depleted, water scarce places such as the region of 150 liters per capita per day. Orange County, California, Tucson, and Windhoek Conservation messages must recognize and align with have shown how diversifying resources can conjunc- what customers are already undertaking, and there- tively replenish and optimize groundwater storage fore must evolve as drought conditions prolong. In for long-term water security. Furthermore, cities in Queensland, Australia, while prior water restrictions Nevada, California, and Arizona are pioneering water focused on outdoor water use, the Target 140 cam- banking schemes and virtual water transfers that paign focused on indoor use, specifically the four-­ enable the optimization of ground and surface water minute shower. By identifying one key consumer storage and flows across complex large-scale water behavior to address and campaigning heavily around systems. this change strategy, officials were able to personalize the problem and individualize the solution. Feedback Optimizing Groundwater Management to the community became an important feature of the While not present under all cities, aquifers are campaign by providing information to households on reemerging as the key element in developing an inte- their performance against the 140 target, congratulat- grated approach to urban water security. A significant ing them or encouraging them to try harder (Walton proportion of the cities in water scarce areas originally and Hume 2011). developed on the basis of extensive groundwater Water Scarce Cities: Thriving in a Finite World 19 resources. However, over time these resources were The conjunctive use of surface and groundwater, overexploited or polluted, and with coastal cities, sub- including groundwater storage, has advantages under ject to seawater intrusion. As a result, cities became conditions of extreme variability: they respond to increasingly dependent on imported water provided stress on a different time scale, and groundwater stor- from distant reservoirs through major conveyance age reduces evaporative losses. Leveraging aquifers’ infrastructure. Recently, a number of cities, including large storage capacity can provide an economical alter- Windhoek, have recognized the threats to external native to the expansion of water production capacity supplies of water resulting from competition during or surface storage infrastructure. The Orange County drought years and, in some cases, threats to convey- Water District (OCWD) provides an example of sound ance infrastructure from natural and human-made aquifer management along these lines: the utility oper- disasters. As a result, they have focused on rehabilitat- ates the aquifer as a reservoir to withdraw or store ing their underlying aquifers. These aquifers serve as water and buffer alternating periods of drought and safe water storage, and when used with grey and green water availability. The OCWD initially balanced natural wastewater treatment infrastructure, become part of recharge and injection of imported water to reduce the water treatment and reuse cycle. Hence, the health costs and protect the aquifer from saline intrusion, as of the underlying aquifer is often seen as an indicator illustrated in figure 3.4. Now the water district has of the health of the urban water management system. added new sources such as stormwater flow and highly FIGURE 3.4. Aquifer Recharge to Protect Coastal Aquifers from Saline Intrusion and Increase Yield Paci c Ocean Talbert Alpha Beta Lambda Main aqu Current extent of seawater intrusion ifer Source: Orange County Water Department. 20 Water Scarce Cities: Thriving in a Finite World treated wastewater to that recharge portfolio, using introduced financial incentives to encourage local WSS innovative techniques to maximize infiltration as service providers to pump groundwater within a target shown in photograph 3.2. A similar scheme using range: OCWD establishes the percentage of each service reclaimed water for local aquifer recharge and direct provider’s total water supply that should come from potable reuse is being implemented in Perth. groundwater—the rest being purchased as imported water, which is more expensive. If water service provid- Unlike surface water shortages, declining groundwater ers pump above the defined percentage, they are levels are not immediately visible and require closer charged a fee calculated so that the cost of groundwater monitoring to avoid overdraft. Optimizing aquifer man- production equals the cost of imported water. agement should therefore occur with the development of a clear urban water metabolism framework to account Good local governance and strong coherence of water, for the stock and flows, and—in turn—sound groundwa- energy, and food policies are key to the efficiency of ter governance and regulations. Malta’s water company these programs. In some cases, water sector and urban launched a program to register and measure all abstrac- regulation, as well as traditional practices, can repre- tions, going to the extreme of providing users with the sent a major obstacle to their effective implementa- meters and the management tools  to monitor with- tion. In Lima, Peru, the water utility cannot legally drawals. In Tucson, Arizona, pumping groundwater is enter private properties to measure water usage and regulated by permits, whose delivery is subject to strict flow from wells located on owners’ lands. As such, quantity and reason for use. In conditions in terms of ­ they cannot report groundwater use to the National those cases, a strong monitoring and enforcement sys- Water Authority, and both entities lack the tools and tem needs to be in place. The Arizona Department of legal backing to execute their regulatory mandates. Water Resources even prohibits new  developments Finally, several experiences have shown that local gov- supplies of water unless sufficient and adequate ­ ernance, through the inclusion of all relevant stakehold- for  100  years are demonstrated. Orange County has ers, can be an important tool to improve groundwater governance. For example, Morocco’s groundwater man- PHOTOGRAPH 3.2.Inflatable Rubber Dams Used agement contracts, such as the Sous Massa contract, are to Maximize Groundwater Infiltration, Orange established with a limited number of stakeholders, at a County, CA small scale, and promote participatory management of local groundwater (similar experiences have also been successfully implemented in the Republic of Yemen). The effectiveness of this approach depends on multiple factors including the existence of a governance system and the size of the contract, and requires upstream com- munication and awareness of the groundwater situa- tion. Furthermore, stakeholders need to agree on water uses for the group and must rely on an adequate system to keep users involved, and adapt to new users or changes in the use of groundwater. Water Banking and Virtual Transfers Water banking has emerged as another solution to save Source: Orange County Water Department. unused allocations while ensuring availability for future Water Scarce Cities: Thriving in a Finite World 21 drought years. Surplus water from one year can be stored water across three states of the Lower Colorado River locally—to avoid evaporative losses—in an unconfined basin, the SNWA has bolstered its resilience to local- aquifer, withdrawn in subsequent years by the “banker,” ized droughts in the region and can choose where to and transferred to supplement the water resources of withdraw water from in the future. Because the SNWA the “client,” as illustrated in figure 3.5, panel a. Transfers is upstream on the Colorado River from California and can also be done through exchange deliveries, by which Arizona, these banking agreements can be considered an entity upstream takes surface water from a reservoir as “virtual transfers,” similar to the exchange delivery or aqueduct and the water bank extracts and returns the scheme but across state boundaries. When the SNWA same amount downstream, as schematized in figure 3.5, decides the need to withdraw the banked resources, it panel b. Most examples of this approach have evolved in notifies the Arizona Water Banking Authority (AWBA) southwestern United States: legal frameworks con- and withdraws the water upstream from a reservoir trolling water ownership and specific geological condi- on the Colorado River. Then AWBA pumps an equiva- tions and extensive infrastructure have allowed it, lent amount out of its aquifer in Arizona and returns it particularly in the Lower Colorado River basin, where to the canal for downstream use. The water isn’t phys- storing water in a surplus year prevents holders of water ically pumped back from Arizona to the SNWA; rights from losing that apportionment in the future. The instead, a virtual transfer takes place along the river SNWA, for example, banks water in the Las Vegas Valley system. Such arrangements can help make innovative aquifer, in Arizona and in Southern California, for a total use of the large infrastructure and water rights sys- capacity of 2,220 million m that it plans to keep avail- 3 tems in such areas. In Murcia, Spain, the river basin able to respond quickly to future shortages. authority allows users in different points of the basin to exchange resources “not used” from the estab- Another tool is “virtual trading” or exchange of lished allocation in drought periods. These can then resources within a river basin. By spreading its banked be returned later to the system, without a physical FIGURE 3.5. Water Banking Schemes a. Phased banking scheme Phase 1: Surplus water storage Phase 2: Transfer to the client Banker Client Banker Client Aquifer (bank) Aquifer (bank) b. Exchange delivery scheme Upstream Downstream Client Banker Reservoir/river Aquifer (bank) 22 Water Scarce Cities: Thriving in a Finite World FIGURE 3.6. Virtual Transfer Scheme Upstream Downstream Banking Banker authority Reservoir/river Canal Aquifer (bank) link between them for such transfer, as illustrated nonconventional sources. They are either incorpo- on figure 3.6. rated by increased local capture, such as stormwater in Los Angeles or Tucson, or “sponge cities” in China Experience from California and Murcia shows that (in which green infrastructure enables the manage- stored water best comes from sources hydraulically ment, filtering, and retention of stormwater), or are disconnected from the banking area. When the two generated by new technological advances such as parties involved in a water banking agreement are in wastewater reuse and desalinated seawater. Indeed, the same river basin, drought conditions are likely to advances in membrane filtration and energy ­recovery enhance water demand from the client and the banker are increasing the attractiveness of indirect or even simultaneously. In Kern County, California, the water direct potable reuse, which are pioneered in places bank generally uses the market value of water to estab- including Orange County, San Diego, Windhoek, lish the stored water price. For third-party water users Singapore, and India. These provide more flexibility, outside of the county, the cost increases depending on particularly in the face of climate change. Their opti- the local hydrological conditions. In contrast, the mal use can be supported by a fit-for-purpose use water banking agreement between the SNWA and the philosophy and corresponding infrastructure, which AWBA allows for a higher recovery (abstraction) rate can promote energy efficient and low-cost local during a declared shortage on the Colorado River. water sources for nonpotable uses. Similarly, Murcia’s Mancomunidad de Canales del Taibilla (MCT) can tap reserve sources (aquifers on the Stormwater Management and Rainwater upper basin) during drought periods and return these Harvesting used resources by lowering its abstraction in more Urbanization and urban development have had signifi- plentiful periods. cant impacts on the permeability of the surfaces of most cities and thus have generally increased runoff Nonconventional Water Resources: Waste, and reduced groundwater recharge in urban areas. Storm, Sea Most cities have implemented separate drainage sys- In the face of drought and increasingly scarce con- tems that convey stormwater runoff directly to a ventional water sources, several cities have begun nearby water body. These systems try to avoid the to  diversify their water portfolio by adding problems faced by those that rely on combined sewer Water Scarce Cities: Thriving in a Finite World 23 systems and experience overflows when strong rain while reducing the runoff of pollutants into washes, events affect the area. In general, stormwater is per- rivers, and groundwater (Pima County, and City of ceived as a form of wastewater, to be disposed of, Tucson 2015). Examples include swales and xeriscape though it presents different quality characteristics (landscape that requires little or no irrigation); these from sewage. It does not include human waste and ­ nitial planning stages. are often incorporated as part of i therefore generally requires less treatment to achieve In comparison, green infrastructure uses structural the quality required before being used as an alternative developments, such as cisterns and filters, to achieve water source. the same objectives. These may include rain gardens or landscape designs that collect, distribute, retain, The southwest city of Los Angeles provides a good and filter water; rain barrels that hold harvested water example of how the consideration of stormwater has for later use; or green streets that incorporate ­features changed. Flood mitigation was the only motivation ­ ardens along roadways (U.S. EPA 2009), as of rain g behind Los Angeles’ stormwater management efforts shown on photograph 3.3. These approaches allow for initiated as early as 1915. Through an elaborate system the capture and channeling of stormwater through of concrete channels, storm basins, and drains, the riv- natural systems, which avoids excess contamination ers and creeks in the county’s urban areas were con- while ensuring water can be collected and infiltrated tained with a straight path to the ocean and larger for reuse. rivers, without consideration for the significant pollu- tion loads of stormwater6 or the value of these flows as Many cities faced with increasing water shortages a potential water resource. Recognizing and trying to have looked back to an old source: rainwater catch- mitigate the negative impacts of the pollution load of ment and storage, generally referred to as “rainwater these runoffs on the environment, the California State harvesting,” for later use, normally implemented at Water Resources Control Board and the Los Angeles the dwelling scale. Tucson has launched several such Regional Board developed in 1990 a stormwater permit initiatives with mixed results despite substantial system for different sectors, mandating that cities, financial incentives. Singapore’s water utility is con- industries, and farmers control pollution in runoff gen- sidering making rainwater runoff capture mandatory erated in their areas. Since runoff doesn’t follow city from all new housing development. Jaipur has regu- boundaries, the 88 cities in Los Angeles County were lations that require rainwater capture for all build- given the option to carry out stormwater planning with ings whose roof surfaces are more than 300 square other cities of the same watershed or with the county meters. Malta building codes mandate the installa- to maximize the impacts of their projects and pool tion of rainwater collection and storage in all build- funding. With the institutional setup provided by these ings to recycle this rainwater as greywater in the plans and the treatment capacity installed to control home (for toilet flushing) or to be used outside the pollution, the city and the county are now looking into home (such as for gardening), following an old tradi- the best ways to capture these resources through aqui- tion in the island (and most Mediterranean areas). In fer infiltration and other methods, closing the circle China, where over half of the cities are considered from flood mitigation to utilization of the resources. water scarce, the government has successfully Tucson has implemented two different approaches launched the concept of “sponge cities,” in which to  improve stormwater management: low-impact green infrastructure enables the management, filter- development and green infrastructure. Low-impact ing, and retention of stormwater, thus significantly development modifies land to mimic predevelopment reducing the impacts of recent floods in the pilot hydrology and help maintain infiltration and drainage cities of Xiamen and Wuhan. In these examples, 24 Water Scarce Cities: Thriving in a Finite World PHOTOGRAPH 3.3. Green Infrastructure, Tucson, Arizona a. Xeriscaping to capture and in iltrate stormwater b. Low-impact development of pervious pavement Source: City of Tucson. rainwater is collected and treated to standards that harvesting systems, including property value capture allow its reuse instead of being dispatched to the and nonmarket values (such as enhancement of micro- ocean, evaporated, or polluted further once incorpo- climate and resilience to increasing heat wave condi- rated into surface runoff, with the added advantage tions, and reduction of sewage overflow), should be of reducing runoff volumes and flooding. systematically included in its economic valuation. From a financial perspective, larger projects tend to The capital cost of such programs remains a barrier, yield better returns, with costs per m3 over a 20-year and mixed results on cost-effectiveness have led to life decreasing as the size of the system increases (with varying levels of political support. However, this bar- million m3 captured per year), as best results over 10 ­ rier is largely attributed to current economic valuation ­ gure 3.7 (Atwater 2013). Further eco- illustrated on fi of stormwater and rainwater harvesting projects being nomic evaluation, including a broader inventory of limited to the assessment of water as an undifferenti- projects benefits, would need to be carried out to con- ated commodity. Instead, the multiple benefits associ- firm the comparative advantage of larger infrastruc- ated with distributed stormwater and rainwater ture projects. Water Scarce Cities: Thriving in a Finite World 25 FIGURE 3.7. Comparison of Unit Cost of Stormwater Capture Projects to Their Scale 100 10 Project cost (US$) per m3 assuming 20-year life 1.0 0.1 0.01 0.001 0.01 0.1 1.0 10 100 Million m captured per year 3 Source: Atwater 2013. Tucson’s water utility experience illustrates the com- irrigation, two critical household expenses in Tucson parative advantages of active and passive rainwater in the summer. These results indicate that passive harvesting programs: the net benefits of the active approaches, with less participation by individuals rainwater harvesting rebate program could not be and behavior change requirements, may be more shown to be demonstrably high, while in fact this pro- effective for cities to put in place. cost-­ gram generates the greatest expense out of the eight water conservation rebate programs of this city (Davis As with other nonconventional sources, stormwater 2014). Further, since the program is financed as part management and rainwater harvesting often lack an of the conservation fee, which grew by 40 percent in institutional home among city stakeholders, espe- 2012 when rainwater harvesting was introduced, cus- cially since these sources are intersect among the tomers have expressed discontent regarding the over- functions of local governments, public health agen- all fee increases and have questioned its cost-benefit cies, water resource management agencies, and WSS balance. In contrast, passive approaches, including service providers. This situation can undermine infiltration trenches, xeriscape swales, and water har- responsibility and ownership, as seen in Malta, where vesting basins (often referred to as “groundworks”), the Ministry of Infrastructure is in charge of stormwa- have been shown to provide social and environmen- ter management, while enforcement is with urban tal benefits that outweigh more than 50 percent of planning authorities. Even though Malta historically their associated costs (Pima County and City of has depended on rainwater harvesting for water sup- Tucson 2015). Indeed, passive approaches improve ply, this practice has been largely abandoned in recent the area’s tree canopy, which has been shown to decades. Legislation requiring all domestic and insti- reduce electric bills for cooling and the cost of tutional buildings to be equipped with a rainwater 26 Water Scarce Cities: Thriving in a Finite World collection cistern is not enforced systematically, and rivers, or groundwater basins, and extracted again fur- households rarely invest in the expensive double pip- ther downstream (Asano and Levine 2004; Bixio et al. ing that would be required for greywater use. Malta’s 2008; NRC 2012). This reintroduction into the natural example shows the importance of clearly defining system serves as a buffer before consumption and has roles to (a) enable monitoring and enforcement of been considered acceptable to the public, especially rainwater harvesting legislation, (b) make incentives since the effluent is carried downstream and goes more effective, and (c) bring about multiple benefits out of sight—and therefore out of mind. in water scarce urban environments, in terms of flood However, increasing freshwater scarcity and technol- mitigation and a decrease in water demand. ogy advancements have begged the question: why Policies regarding stormwater management and rain- waste such a readily available source of freshwater water harvesting, especially when they include clearly when it could be reused at the point of production? defined requirements for its reuse, help ensure that rel- For instance, Orange County produces recycled waste- evant entities are comfortable with this nonconven- water for injection into the aquifer, which uses half tional source and can therefore be advocates for its the energy of importing and a third of the energy implementation. Kalkallo in Melbourne, Australia, required to desalinate that same amount of water. launched an innovative plan for potable reuse of storm- Cities and counties have begun to see wastewater as a water that has lain idle due to regulatory barriers, lack of strong ally in dealing with droughts while avoiding coordination and role definition, and the absence of significant infrastructure costs; a previously untapped clear procedures for quality assurance of stormwater source, it is an important resource not to be thrown capture and management of the projects, which have away. hindered institutions from taking ownership and mov- The reuse market has focused on nonpotable reuse ing the project forward (McCallum 2015). applications, such as landscape irrigation and industrial By defining the rules early—including the need for processes, or urban nonpotable purposes, such as toilet additional regulation and the roles of all relevant flushing and cleaning. These are initial steps in most stakeholders—cities ­ can secure acceptance and reuse experiences because they demand lower levels of momentum for nonconventional sources. In Tucson, treatment. Such fit-for-purpose resource development demonstration sites of green streets throughout the approaches can be particularly relevant, especially in city have helped secure community approval while the low-income countries. In Lima, the regulation serving as test beds and foundations for guidelines. allowing for the reuse of water for the irrigation of green Public acceptance remains a barrier to the widespread areas and parks in the city was established before the application of stormwater reuse, though support is city’s first wastewater treatment plant was even com- generally higher for nonpotable applications, as dis- pleted. In Cyprus, about 90 percent of the treated waste- cussed in “Importance of Inclusion and Good water is reused, in majority for irrigation purposes, Communication” section in chapter 4. as  illustrated on photograph 3.4. Jaipur has imple- mented a reuse program for urban landscape irrigation Wastewater Reuse and Marrakech, Morocco, has Unplanned indirect potable reuse (IPR), or “de facto mandated that all golf courses, reuse,” (Asano et al. 2007) has been an accepted prac- which are strong contributors The biggest barrier to such tice for centuries, as the effluent from wastewater treat- to local tourism, be watered programs remains public ment plants and raw sewage is traditionally with recycled w ­ astewater. acceptance, or the “yuck reintroduced into the environment through streams, Demand for nonpotable reuse factor.” Water Scarce Cities: Thriving in a Finite World 27 PHOTOGRAPH 3.4. Wastewater Treatment and Reuse for Irrigation, Cyprus a. Limassol (moni) wastewater treatment plant b. Wastewater reuse for irrigation Source: Sewerage Board of Limassol - Amathous. Source: Water Development Department, Government of Cyprus. applications is increasing globally, and are expected extracted for agriculture (“new water” users will be to account for  97 percent of total reuse in 2022 charged a tariff slightly lower than current groundwa- (GWI  2017). This demand in turn is leading to more ter pumping costs). In preparation, the Water Services scrutiny on the part of regulators to maintain public Corporation carried out a sophisticated mapping exer- and environmental health through proper guarantees cise to identify the agricultural water users with the and controls. most water-thirsty and high-value crops, since they could pay for this service. In parallel, the Water Proximity of an agricultural area to a city provides Services Corporation and the Energy and Water Agency another opportunity for nonpotable reuse of the city’s have launched an information and marketing cam- wastewater and may secure a portion of the farmers’ paign targeting the general public and consumers of potable quality water for municipal uses. City govern- agricultural products. ments should be encouraged to work with higher tier authorities to secure a water partnership in which water resources diverted to support urban water Two options are normally ­ considered, direct and IPR. demand is “returned” to the agricultural sector as Direct potable reuse (DPR) is made after  wastewater is reclaimed water following treat- subjected to  advanced treatment to obtain a highly ment. In Malta, the Water effluent, which is then reintroduced directly at the treated ­ Services Corporation commis- intake for potable water or into pipes. IPR requires that the Though uptake has been sioned the first “new water” highly treated effluent pass through an environmental slower due to health and plant in 2017, making over usually an aquifer or a reservoir—before being buffer—­ regulatory concerns, wastewater reuse for 60  percent of the wastewater pumped back out and treated with other future potable uses represents treated available for reuse to potable  supply. Located in an  extremely arid area, the next frontier to agricultural and industrial Windhoek has been reclaiming wastewater through DPR maximize the potential of water users, with the objective since the 1960s in response to worsening drought condi- wastewater in water scarce of freeing a substantial amount tions. Today, reuse provides over 20 percent of the city’s areas. of groundwater currently supply, both for potable purposes and urban greening. 28 Water Scarce Cities: Thriving in a Finite World In Singapore, it covers up to 30 percent of the city’s water customers, though it would have the capacity to pro- demand. Orange County, too, uses IPR successfully. duce more recycled water. On average, conveyance costs of nonpotable reuse projects are estimated to The most successful cases of potable reuse have add $0.55 per m3 to $0.80 per m3 to the cost of addressed community outreach through education treatment. and marketing. The Orange County Water District (OCWD) has conducted an aggressive outreach cam- Similarly, there is an ongoing debate about the effi- paign that has sought to earn and maintain support ciency and unnecessary costs associated with the for this unprecedented wastewater reuse project. environmental buffers required for IPR. For San Launched nearly 10 years prior to the project Diego, California, the cost of the pipeline that would start-up, the extensive outreach campaign’s success bring highly treated wastewater to the San Vicente is demonstrated by the lack of organized opposition Reservoir (the environmental buffer required in this to date. Similarly, though the program has been case for IPR) is motivating the city to look at DPR ongoing for decades, Windhoek makes sure to instead, and to become actively involved in the pro- engage regularly with the media so customers are cess of drafting regulations for DPR at the state level. aware that drought conditions are still in effect. In San Diego and Windhoek have shown that the highly Singapore, outreach efforts focus on communicating treated effluent from their advanced wastewater the need to look at water as a renewable resource: to treatment plants is of better quality than the water change the negative popular opinion toward recy- bodies from which they draw water for potable use. cled water, recycled wastewater was renamed as In San Diego, modeling has shown that reservoir “NEWater,” wastewater treatment plants were water quality would improve once reclaimed water renamed as “water reclamation plants,” and waste- were introduced. In this sense, cities need to con- water was renamed as “used water.” sider whether it makes sense to treat this water twice before it makes to the tap and assess the feasibility For both nonpotable reuse and IPR, infrastructure of DPR. remains a challenge. Any type of wastewater reuse requires that wastewater be collected and treated, When comparing desalination and wastewater which poses a challenge in some low-income ­ c ities reuse plants that use reverse osmosis, reuse remains that lack wastewater management systems—and less expensive due to the characteristics of the these represent a large capital investment. Kfouri, input water. The higher salinity of the ocean water Mantovani, and Jeuland (2009) emphasize this as a requires more pressure to be applied in the reverse significant limitation in the Middle East and North osmosis process, and advanced water treatment Africa region, for example. Nonpotable reuse has his- requires under a third of the energy needed for torically relied on the construction of extensive dual desalination.7 In addition, for most cities, second- networks for distribution to avoid any chance of con- ary treatment is a regulatory requirement. Though tamination, as  is the case of the “purple pipes sys- cost estimates for reuse often take the whole treat- tem” in California or Israel. In West Basin County, in ment train into account, the difference is in the the southwestern United States, using such a network incremental (tertiary and advanced) process. to reach its recycled water customers is actually a hin- Currently, the cost of reusing reclaimed water for drance to further growth of the reuse operations. potable purposes through reverse osmosis ranges Cost-benefit analyses have shown that it does not from $0.60 per m3 to $1.62 per m3 depending on con- make economic sense for the West Basin County to veyance (GWI 2017). When comparing the costs of further expand its purple pipe network to reach new different new sources of water for San  Diego in Water Scarce Cities: Thriving in a Finite World 29 2013, the city estimated that, for IPR, $0.8 per m 3 seawater barrier, and groundwater replenishment, and (about half of the estimated total water cost) could low- and high-pressure boil feed. Each demand be saved in the form of wastewater and water qual- requires a progressively higher treatment quality (and ity credits from averted flows to the ocean and cost), and demonstrates the range of potential uses of reduced salinity in the reservoirs. Tertiary (toilet 8 recycled water. Costs are transparently passed on to flushing, agriculture, and industrial) and triple bar- customers for the amount of water purchased, while rier reuse combined are expected to overtake ensuring a drought-proof supply of water. desalination by 2022. Triple barrier reuse (advanced Finally, the SNWA has an extremely innovative waste- treatment for potable uses) has been identified as water use: it capitalizes on regulatory tools by applying the fastest growing type of reuse at 11.7 percent per the concept of “return flow credits,” wherein wastewa- year (GWI 2017). ter is treated and returned to the Colorado River Recycling wastewater close to where it is generated upstream of the city to increase its potential water provides another approach to avoid the cost and infra- use  by 75 percent without additional allocation for structure associated with transporting it to and from a the  river. Any surplus water from its allocation is centralized location. Such localized reuse is being measured and stored in Lake Mead for future use. ­ implemented by San Francisco, California, through its Another example of application of regulatory instru- Non-Potable Water Program, which allows for the col- ments is in China, where, since 2012, the government lection, treatment, and use of alternate water sources has limited freshwater abstraction for industries for nonpotable purposes, such as toilet flushing and that  do not reuse some of their wastewater streams landscape irrigation. Alternate sources include grey- (GWI 2017). water (bathroom sinks, showers, and clothes washers) and blackwater (toilet flush water). As of 2015, the San Seawater Desalination Francisco Health Code mandates onsite reuse for new Seawater desalination is an increasingly appealing buildings over 23,225 square meters. Though to date water source for cities located on the coast9 since it is not enough systems have been put in place for conclu- climate independent and can mobilize unlimited sive cost analysis, current grants from the city seem to resources, although at still higher costs than traditional be insufficient to cover capital costs and operating sources. Also, seawater desalination can reduce the expenses, which will likely need to be met through needs for conveyance and raw water storage compared substantial increases in rental or condominium fees. to surface water solutions, which can be financially and As building scale systems remain an emerging prac- politically attractive. Reports of desalination through tice, further research is ongoing to maximize efficiency distillation date back as early as Aristotle, who states at this scale and draw out lessons learned for wider sailors carried out “shipboard distillation” in the 1660s. application. Large desalination plants using distillation have been in Industrial reuse represents another promising market: operation in the Middle East since the 1930s (NRC with increasing competition among uses, industries 2008); now these have been replaced by mem- are seldom prioritized in water scarce areas, while they brane-based desalination, developed in the 1960s and often have the resources to invest in the treatment sys- continuously refined since. tems needed for reuse. The West Basin Municipal Though seawater desalinization is too costly, with too Water District has a menu of options for customers to many energy requirements for many cities, efficiency purchase reclaimed water at the quality requirements improvements and the increasing price of other that meet their needs: irrigation, cooling towers, sources have made this option more competitive. 30 Water Scarce Cities: Thriving in a Finite World In  many cities and countries, seawater desalination excessively during dry years. In Murcia, desalination has thus become the only available option due to lends flexibility in dealing with varying demands. total, temporary, or increasing scarcity of other The bulk water provider Mancomunidad de Canales sources. In Malta, the absence of significant perennial del Taibilla (MCT) seeks to contain water production surface water bodies, the lack of rainfall in the sum- costs by mixing water from different sources to min- mer (the time of greatest demand), and the physical imize the use of desalination to the extent possible, impossibility of imported interbasin transfers have while balancing water quality requirements, demand led the country to develop desalination as early as the variability, and expected evolution in the availability 1880s, as illustrated on photograph 3.5; today desali- of surface water resources. nation meets about half of the country’s supply needs. High energy costs are one of the main barriers to the Singapore, in an effort to become independent from adoption of desalination and are the most volatile imported water, launched its “4th National Tap” component in desalination costs. In Perth, groundwa- with  desalination in 2005, which can now supply ter replenishment with reclaimed water has replaced 25 ­percent of the country’s water. Israel, seeking inde- seawater desalination as the preferred new water pendence from geopolitical tensions around water source, due to its lower unit cost. Though both solu- sources, today gets the majority of its water supply tions will be needed to ensure Perth’s future water from desalination. security, price features prominently in prioritizing the Due to its relatively high cost, desalination tends development of new options. Technology advance- to  function best as part of a portfolio of options; ments over the recent years have enabled signifi- this gives cities flexibility in drawing from different cant  energy recovery from the process, drastically sources based on drought conditions and climate reducing  reverse osmosis’s energy consumption vulnerability. In Perth, where about half of the pota- ­ gure 3.8. This has through recirculation, as shown on fi ble supply comes from desalinated water, the Water allowed  a dramatic drop of desalinated water costs, Corporation uses its network of dams to store excess from $3.00 per m3 in the late 1980s to an average cost of water from desalination plants for use in higher about $1.00 per m3 (GWI 2017) since 2000. For the larg- demand periods or lower rainfall years, which est plants, as low as $0.60 per m3 have been achieved, enables a fallback without increasing production figure 3.9. Advances in renewable as illustrated on ­ PHOTOGRAPH 3.5. Three Generations of Desalination Plants in Malta a. Distillation plant introduced b. Multi- ash distillation c. Large scale reverse osmosis in the 1880s in the 1960s in the 1980s Source: Manuel Sapiano, Energy and Water Agency. Water Scarce Cities: Thriving in a Finite World 31 energy technologies also hold a huge promise in fur- Although, desalination can enhance a city’s water ther decreasing desalination costs, with reductions in resources portfolio by providing an unlimited, cli- energy costs expected to represent about 40 percent in mate independent water supply option, it does not the next 10 years (IRENA 2016). yet outcompete most other sources from a financial standpoint. Because it draws directly from the ocean, desalination allows production to be close Reduction in Reverse Osmosis Power FIGURE 3.8. Consumption in Perth, Australia, 1970–2010 to the main consumers or peak users along the coastline who may need it in times of drought. 18 It  can be easily integrated into the existing n etwork  without much additional conveyance ­ 16 infrastructure, which enables coastal cities to eas- 14 ily maximize its potential. 12 The scale of desalination plants can easily be adapted 10 KWh/m3 depending on a city’s or even a user’s needs. Though 8 economies of scale help lower the production cost of 6 desalinated water, smaller systems have successfully 4 to met lower localized demands. In Malta, since most hotels are along the coast, all major ones have invested 2 in small reverse osmosis systems to produce desali- 0 nated water, which helps them meet higher seasonal 1970 1980 1990 2000 2010 water demand and relieves the utility of the pressure Source: Elimelech and Phillip 2011. of peak demand. These units are sourced and serviced FIGURE 3.9. Unit Cost Rates of Seawater Reverse Osmosis Desalination Plants on the Mediterranean Sea, 2016 6 1.80 Cost of water and O&M (US$/m3) 5 1.50 Captial cost (US$ per m3/yr) 4 1.20 3 0.90 2 0.60 1 0.30 0 0 50 100 150 200 250 Capacity (mm3/yr) Captial cost Water cost O&M Source: Debele forthcoming 2018. Note: O&M = operations and maintenance. 32 Water Scarce Cities: Thriving in a Finite World by a subsidiary of the Water Services Corporation, resorted to encouraging ecosystem restoration else- thus ensuring proper operations and maintenance where for “equivalent” mitigation. In Perth, in response (O&M) and technical capacity. to observed depleted dissolved oxygen levels near the plant outfall (Spigel 2008), a comprehensive environ- Many cities have sought partnerships with the private mental monitoring program to assess the seawater intake sector to try and offset the high costs of desalination and brine outfall has become a condition of the plant’s plants. In Cyprus, where desalination was imple- continued operation. A similar approach might be the mented in 1997 to eliminate the dependency of best option to address similar concerns elsewhere. the  domestic water supply on increasingly vari- able  ­ rainfall, all desalination plants operate under Cooperation with Other Users build–own–operate–transfer (BOOT) contracts. The government is obligated to purchase a minimum Surrounded by water users with different water needs amount of desalinated water each year until transfer, and economic profiles, cities can seek optimized which provides the guarantee needed by the private water  allocations in times of enhanced water stress. sector to know it can recuperate its costs. The unit This requires adequate mechanisms to manage water price for that water varies by plant and covers CAPEX resources at the river or aquifer catchment basin level, (capital expenditure), O&M, energy, and standby institutional capacity to negotiate water transfers from O&M. This model has enabled the Government of low-value uses toward higher value uses and realize Cyprus to leverage the private sectors’ knowledge, associated tradeoffs, but also in many cases large and experience, and financing capacity to improve the costly infrastructure conveyance systems. Examples quantity and quality of public water services, while from Australia, Spain or South California have demon- making sure that the cost of water at each plant strated the benefits of enhanced cooperation between reflects production expenses. users to improve urban water supply security. Desalinization is not without problems additional Managing Water at Scale to its high cost and energy requirements. Public accep- Elevating the scale for water resource management to tance is a barrier for  desalination as for other noncon- the level of the catchment basin serves to identify and ventional sources, especially regarding environmental assess competing interests and prioritize uses (and impacts. Groups that represent interests linked to coastal users) in times of drought. In Murcia, the integrated management, such as conservation in marine bays and management of water resources at basin scale by the surfers, are particularly vocal in their opposition. One river basin agency—and the interconnection of water main complaint is linked to existing efficiency levels, conveyance networks—provide flexibility and adaptive which require that about twice the amount of potable capacity, and facilitate the reallocation of resources water produced needs to be withdrawn from the sea between places, users, and periods of use in response through intakes that “suck in” fish egg and larvae, dis- to evolving needs. It also provides a potential opportu- turbing and destroying marine wildlife. Another point of nity to adjust demands to available resources. concern relevant for coastal impacts is brine discharge. Since the output from the reverse osmosis process is a Unless the water body’s characteristics make abstrac- concentrated brine, roughly twice as salty as the seawa- tion practical across much of the basin, large infrastruc- ter that entered the plant, it is claimed it causes harm to ture systems are required to share water resources at marine life dwelling on the sea floor. Currently, the meth- the basin scale and move water among users. Due to ods for estimating the actual impacts on wildlife are seasonal variation in water availability, conventional complicated and  imprecise, so many regulators have surface water systems depend on storage to ensure Water Scarce Cities: Thriving in a Finite World 33 PHOTOGRAPH 3.6. Desalination Plant in Almería, Spain Source: RamblaMorales/Flickr. supply during the dry seasons and tend to be heavy on and conveyance, for example—are often unfairly infrastructure. For groundwater, exploitation requires passed on from the water wholesaler to the  service an established network of wells to abstract water and provider. In the supply of the coastal towns Safi and monitor the quantity and quality of the resource over kilometer long El Jadida, in Morocco, the current 80-­ time. Ultimately, the costs of constructing or expanding ­ eservoir entails losses bulk water transfer from the r conveyance infrastructure are often large enough to representing almost half of the cities’ demand. The encourage cities to look to alternative and more local planned implementation of local desalination plants solutions. In Windhoek, the cost of artificial aquifer will release corresponding volumes, including cur- recharge is estimated at a third of the cost of securing rent losses, for the piped supply of Marrakesh from more surface water through a new pipeline. These that same reservoir (Dahan and Grijsen 2017). tradeoffs could deter users from actively engaging Limiting efficiency measures to the urban water supply around river basin reallocations if there is no physical network but not to upstream processes creates way to transfer water from one point of use to the other. institutional disincentive for the service provider. an  ­ System efficiencies can be best identified and achieved In Morocco, the water supply provider’s mandate is lim- when the water cycle is considered at basin or ited to the distribution of water that has been abstracted, cross-basin level. The costs of inefficiencies upstream treated, and conveyed by the bulk national water service from the city—linked to water resource management provider. Its financial incentives to reduce leakages 34 Water Scarce Cities: Thriving in a Finite World extend only as far as associated distribution costs remain uses toward higher value uses, especially where munici- smaller than the benefits resulting from reduced water pal demand has become difficult to fulfill and alterna- pumping. For Marrakesh, the launches in 2018 and 2030 tives are costly. In Australia, water markets take of new interbasin transfers will entail, in addition to advantage of having a variety of water users with differ- treatment costs, conveyance costs many times higher ent abilities to cope with shortages. Water transfers are a than distribution costs at city level (Dahan and Grijsen more formal and large-scale way to handle such realloca- 2017). Institutional mechanisms incentivizing the reduc- tions, in which both parties legally agree to transfer a tion of all costs will be critical to achieve system water water right for a certain amount of time. In Malta, the efficiency and water conservation to its full potential. service provider plans to provide about 60 percent of the agricultural sector’s water through reclaimed wastewa- Cooperation for Optimized Allocations ter, which would in turn free up water for municipal use. Water markets, such as those operated in the Murray– Rural to urban water reallocation has attracted atten- Darling basin in Australia or in Reus, Spain, are an import- tion among policy makers across continents (as shown ant tool to move water from low-value or low-priority on map 3.1), motived by the premises that (a) MAP 3.1. Overview of Rural to Urban Water Reallocation Projects, 2017 Australia China Indonesia Mexico Spain Thailand US Cont’d 1 - Adelaide 6 - Kaifeng 13 - Bandung 20 - Guadalajara 26 - Alicante 32 - Chiang Mai 38 - Lower Rio Grande 2 - Melbourne 7 - Ordos City 21 - Hermosillo 27 - Guadalajara 39 - Metropolitan Water District 8 - Wuzhong Prefecture Iran 22 - Mexico City 28 - Seville Tunisia 40 - Reno Brazil 9 - Xinxiang 14 - Esfahan 23 - Monterrey 33 - Tunis 41 - San Antonio 3 - NE Brazil 10 - Yiwu City Taiwan 42 - San Diego 4 - Sao Paulo Japan Nepal 29 - Taiwan United States India 15–18 - Saitama/Tokyo 24 - Kathmandu 34 - Casper Yemen, Rep. Chile 11 - Coimbatore Tanzania 35 - Denver 43 - Sana’a 5 - Coquimbo 12 - Hyderabad Jordan South Africa 30 - Arusha 36 - Las Vegas 19 - Amman 25 - Mokopane 31 - Moshi 37 - Los Angeles Source: Yu 2017. Water Scarce Cities: Thriving in a Finite World 35 agriculture uses most of the water, (b) low water use The SDCWA benefited from the existing water convey- efficiency is prevalent in agriculture, and (c) the mar- ance infrastructure to serve all the parties involved. In ginal productivity of water is often higher in urban areas Perth, the Perth Water Corporation and Harvey Water than in agriculture. To achieve effective reallocation (an irrigation water supplier) agreed to convert open projects recognizing potential equity challenges for irrigation channels to pipes to convey 17.1 million m3 per rural areas and addressing the political complexity of year to the Water Corporation. Since 2006, this $58 mil- such urban-rural dialogue, it is essential to have institu- lion investment harvests water that would otherwise tional capacity and effective processes for negotiation be lost through seepage and evaporation, while bene- and compensation for those who stand to lose (Yu 2017). fiting the irrigators through a pressurized pipe irrigation system that has enabled more controlled irrigation that In 2003, the San Diego County suits higher value horticulture crops. As such, the proj- Water Authority (SDCWA) nego- Cities must look beyond ect has received strong support from the local commu- tiated the largest transfer from competition among nity. The formal nature of such water transfers can agricultural to municipal use in users to identify help ensure all parties are compensated appropriately the United States, securing up opportunities based on the and sets formal precedence for the priority of to 247 million m3 per year for 75 characteristics of different municipal use. years. The transfer requires the users’ water needs and realize those tradeoffs. Imperial Irrigation District, which has one of the highest Water Trading priority water rights on the Colorado River, to improve Water markets provide a flexible mechanism to reallo- its water use efficiency and avoid what the State of cate water in time and space. Indeed, compared to California defined as “wasteful use.” The water con- water banking agreements or water transfers, which served is in turn sold to the SDCWA. This transfer is part are set legal contracts over long periods of time, a of a larger agreement aiming to reduce California’s use water market transaction can allow a water user to of Colorado River water and marks an important change increase revenue by leasing its water allocation to in California water allocation: it prioritized municipal another user for whom that water has a higher value at use and condemned water waste by agricultural users the time, while not giving up access to that water in the previously protected by the seniority of their water future. Though most water markets remain informal rights. It also indicates that, even in a case as seemingly and focus on irrigation water, experiences in Australia overallocated as that of Southern California, there is under the National Water Initiative, especially in the flexibility in the system to accommodate changing Murray–Darling basin, have shown good results in needs and climatic conditions. As water management is minimizing transaction costs and providing for urban rife with legal conflicts in water demand and environmental protection. Because California, it took over 15 years having a variety of water users—with different abilities Having an agricultural to reach this agreement, which to cope with shortages—helps ensure that water trad- buffer (through nearby points to the complicated ing is relevant to the area, this may prove a successful agricultural activity) nature of negotiations between solution for cities dealing with various stakeholders enables urban municipal agricultural and municipal and competing uses. water managers to water users. Reus, Spain, helped create such a system with farmers purchase water from agricultural ­interests Such water transfers depend (Ruydecanyes, later expanded to include the valley in time of drought or on available conveyance infra- of Siurana), which increased water resilience in the city shortage. structure to reach the new user. through a market scheme since the early 1900s. 36 Water Scarce Cities: Thriving in a Finite World This regional market uses newly developed additional Planning Water Systems under Uncertainty water. Transactions are transparent and regulated Despite significant improvements in climate modeling under simple norms for seasonal and permanent trans- and downscaling of general circulation models (GCMs), fers. Though, as in the case of Reus, such market struc- spatial and temporal precision remains usually insuffi- tures are informal, they require transparency and an cient to inform water resources planning at a city or agreed structure among stakeholders. These schemes basin level. Climate change therefore brings deep uncer- may be present de facto in many places (for example, tainty in the programming infrastructure development. shadow trading of water with farmers or administrative Robust decision-making approaches assess the sensitivity allocations to them by a government agency), and they of a proposed investment plan’s performance to changing generally improve efficiency whether or not they are conditions, and accordingly adjusts the plan to minimize formalized. However, formalization may increase trans- its vulnerability. These planning approaches strongly action costs compared to more informal mechanisms. value no-regret measures, which can be implemented Though in Reus resilience has been achieved through a regardless of climate change uncertainty and still yield much larger regional system with water conveyed from helpful results. This includes solutions with a high bene- the Ebro River (the “big pipe” solution), water markets fit-cost ratio regardless of climate forecasts, such as those complement the diversity of sources and allow a ­flexible aiming to address profligate water consumption, control response for the city in scarcity. Challenges include the network leakages, or improve allocation efficiency need to clearly define water entitlements and ensure through improved cooperation with other users. good information flows between users. It assesses the relative performance and vulnerability of Adaptive Design and Operations investment options across a wide range of potential cli- mate impacts, and combines them into a web of adapta- Effective water resource and drought planning is the first tion pathways prompting policy actions at determined stop in drought proofing conventional systems. If  the tipping points. Such approach was implemented in Lima resource is finite—whether for legal or environmental (Kalra et al. 2015) to help define a step-by-step strategy reasons—and subject to uncertainty, careful monitoring for the development of water production capacity in a of its availability and protocols to deal with future scenar- context of climate and water demand uncertainties. ios can significantly build a city’s resilience, even with- out  additional sources. The key to effective drought Resilient Water Systems Operation planning is anticipation, which avoids costly emergency Resilient water system management should not only responses—both to the utility and to consumers. include response strategies to the current water avail- Adaptive design starts with a detailed inventory of the ability conditions but also the definition of several city’s water budget and corresponding vulnerabilities stages of drought and associated actions to mitigate as baseline information for system planning  and the risks of reaching more severe stages. For example, investments. When the 2008 drought hit Cyprus, in Spain, Aigües de Barcelona’s Drought Management water had to be shipped from Athens at the  cost of Plan tracks key water system performance indicators $8  per m , about five times the cost of desalinated 3 and helps the utility respond through agreed mea- water in that year (Sofroniou and Bishop 2014). When sures to guarantee drinking water supply and mitigate cities fail to provide an adequate water supply, users economic impacts. Based on surface storage levels, pay an even much higher price to water tankers. the utility has defined drought thresholds (normal, In  Beirut, the cost jumped from $20 per m to more 3 alert, exceptionality, and emergency), which than $50 per m during the 2014 drought. 3 10 define  what sources to draw from, as illustrated on Water Scarce Cities: Thriving in a Finite World 37 FIGURE 3.10. Drought Threshold Values and Water Source Mix, by Threshold, Barcelona, 1980–2016 a. Drought threshold values 700 600 500 400 hm3 300 200 100 0 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- n- Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Month/year Emergency III Emergency II Emergency I Exceptionality Alert b. Water source mix Normality Alert Exc. Em. Surface Reuse Desalinated Groundwater Source: Creus 2017. 38 Water Scarce Cities: Thriving in a Finite World figure  3.10, panels a and b. According to a clearly part of longer term  planning defined decision tree, in a crisis, more expensive processes. In such cases, the The decision tree sources (reuse and desalination) would be used first; level of a key reservoir could framework (Ray and then strategic buffer sources (the aquifer); and finally, be  used as a proxy for Brown 2015) provides water normally used for environmental flows would more  detailed water data and planners with a flexible, be tapped (Creus 2017). levels of emergency defined effective approach for cost-­ accordingly. guiding decision making. In Murcia, comparable plans to that of Barcelona have been developed for the city and the river basin. Each level triggers a set of measures that, in the case of Notes urban water uses, can range from public outreach 1. Information directly collected from operational mission by World Bank in Beirut. campaigns to imposing use restrictions. When the emergency level is reached, a legislative drought 2. See Water Sensitive Cities’ website: https://watersensitivecities.org​ . a u /c o nt e nt /r e s p o n d i ng - m i l l e n n i u m - d r o u g ht ​ - c o m p a r i ng​ decree is approved by the central government, -domestic-water-cultures-three-australian-cities-news/. enabling the river basin authority to restrict or reallo- 3. 946 m3. cate water rights, fast-track funding for emergency infrastructure works, and undertake other measures. 4. Fixed charges are the base charges to cover fixed costs such as infra- structures maintenance and fixed operation costs, whereas com- Similarly, in the United States, the SNWA categorizes modity service charges are the price per volume of water used and its water sources according to their availability and cover all variable costs. development strategy: permanent resources, avail- 5. For example, the Water Conservation Coalition, a group of local busi- able for use over the 50-year planning horizon; tem- nesses and community leaders who promote water-efficient prac- tices, or the Water Upon Request program, through which restaurants porary resources, which can be used to meet potential serve water only to those clients who request it. short-term gaps between supply and demand; and 6. Stormwater runoff, particularly in the early stages of the storm, con- future resources, which will be developed during the tains a high load of heavy metals, suspended solids, and organic 50-year planning horizon. Though the SNWA has not ­ matter. These contaminants are accumulated on pavements, roofs, exceeded its Colorado River allocation to date, its and other less permeable areas and then mobilized as part of the runoff. water resource planning embeds several fallback .iwa​ 7. Based on interviews and the website from IWA: http://www​ scenarios should a drought significantly reduce water ­ -­n etwork.org/from-seawater-to-tap-or-from-toilet​ - to-tap​ - joint​ availability. -desalination-and-water-reuse-is-the-future-of-sustainable​ -water-management/. Once a strategy has been defined institutionally, such 8. After going through the reverse osmosis process, treated wastewater preparedness requires the collection of reliable water is remineralized but still has much lower salinity than imported information and its thorough analysis, which in turn is water, which accumulates salts over its transportation due to resource-intensive in terms of equipment, capacity, evaporation. and finances. In Barcelona, where the basin is already 9. When freshwater resources are very limited, such as on small islands, seawater can also be a useful resource even without desalination. heavily regulated with channels and fl ­ oodgates, the Cities like Majuro in the Marshall Islands or Tarawa in Kiribati have electronic measurement of flow data  was facilitated developed seawater flushing systems to ensure adequate hydraulic by the existing extensive infrastructure. However, in conditions in sewerage systems while limiting the use of freshwater resources for potable water needs. With the need for dual piping areas where infrastructure is not as developed, the systems, such option has an economic justification only in extreme ­ installation of water data c ­ ollection stations and the water stress. development of water information systems, with a 10. Information directly collected from population by World Bank in trained team to operate and maintain them, need to be Beirut. Water Scarce Cities: Thriving in a Finite World 39 Kfouri, C., P. Mantovani, and M. Jeuland. 2009. “Water Reuse in the MNA References Region: Constraints, Experiences, and Policy Recommendations.” In Asano, T., F. L. Burton, H. L. Leverenz, R. Tsuchihashi, and Water in the Arab World: Management Perspectives and Innovations, G.  Tchobanoglous. 2007. Water Reuse: Issues, Technologies, and edited by N. Jagannathan, A. S. Mohamed, and A. Kremer, pp 447–77. Applications. New York: McGraw Hill. Washington, DC: World Bank. Asano, T., and A. D. Levine. 2004. “Recovering Sustainable Water from McCallum, T. 2015. Kalkallo: A Case Study in Technological Innovation Wastewater.” Environmental Science & Technology 38 (11): 201A. amidst Complex Regulation. Melbourne, Australia: Cooperative Research Centre for Water Sensitive Cities. Atwater, R. 2013. “Southern California Water Committee Stormwater Capture Opportunities.” Presented at the Southern California Melbourne Water. 2017. “Strategic and Corporate Plans.” Melbourne Environmental Dialogue, Los Angeles, April 24. Water, Melbourne, Australia. Bixio, D., C. Thoeye, T. Wintgens, A. Ravazzini, V. Miska, M. Muston, NRC (National Research Council). 2008. “Desalination: A National H.  Chikurel, A. Aharoni, D. Joksimovic, and T. Melin. 2008. “Water Perspective.” National Academies Press, Washington, DC. Reclamation and Reuse: Implementation and Management Issues.” ———. 2012. “Water Reuse: Potential for Expanding the Nation’s Water Desalination 218 (1): 13–23. Supply through Reuse of Municipal Wastewater.” National Academy of Sciences, Washington, DC. Creus, R. 2017. “Water Management in Barcelona Metropolitan Area.” Presented at the Water Scarce Cities Workshop, “Aigües de Barcelona,” O’Dea, G., and J. Cooper. 2008. “Water scarcity: Does it Exist and Can Casablanca, May 22. Price Help Solve the Problem?” Independent Pricing and Regulatory Tribunal of New South Wales, Sydney, Australia. Dahan, S., and J. Grijsen. 2017. Managing Urban Water Scarcity in Morocco. Washington, DC: World Bank. Pima County, and City of Tucson. 2015. Low Impact Development and Green Infrastructure Guidance Manual. Tucson, AZ: City of Tucson. Davis, T. 2014. “Tucson May Expand Rainwater-Harvesting Rebates.” Arizona Daily Star, November 1. Ray, P. A., and C. M. Brown. 2015. Confronting Climate Uncertainty in  Water Resources Planning and Project Design: The Decision Tree Debele, B. Forthcoming 2018. The Role of Desalination in an Increasingly Framework. Washington, DC: World Bank. Water Scarce World. Washington, DC: World Bank. Sofroniou, A., and S. Bishop. 2014. “Water Scarcity in Cyprus: A Review Elimelech, M., and W. Phillip. 2011. “The Future of Seawater Desalination: and Call for Integrated Policy.” Water 6 (10): 2898–928. Energy, Technology, and the Environment.” Science 333 (6043): 712–17. Spigel, R. 2008. “Review of Studies Relating to the Discharge from the Grafton, R. Q. 2010. “‘Yes We Can…’: Getting Serious about Water Pricing Perth Seawater Desalination Plant in Cockburn Sound.” National Institute in Australia.” EERH Policy Brief, Environmental Economic Research Hub, of Water & Atmospheric Research Ltd. Canberra, Australia. U.S. EPA (United States Environmental Protection Agency). 2009. “Green GWI (Global Water Intelligence). 2017. “Desalination & Water Reuse.” Infrastructure in Arid and Semi-Arid Climates: Adapting Innovative GWI, Oxford, U.K. Stormwater Management Techniques to the Water-Limited West.” U.S. EPA, Washington, DC. IRENA. 2016. The Power to Change: Solar and Wind Cost Reduction Potential to 2025. IRENA, Bonn, Germany. Walton, A., and M. Hume. 2011. “Creating Positive Habits in Water Conservation: The Case of the Queensland Water Commission and the Kalra, N., D. G. Groves, L. Bonzanigo, E. M. Perez, C. Ramos, C. J. Brandon, Target 140 Campaign.” International Journal of Nonprofit and Voluntary and I. R. Cabanillas. 2015. “Robust Decision-Making in the Water Sector: Sector Marketing 16 (3): 215–24. A Strategy for implementing Lima’s Long-Term Water Resources Master Plan (English).” Policy Research Working Paper WPS 7439, World Bank, Yu, W. 2017. Water Reallocation: Lessons from Rural-Urban Transfer. Washington, DC. Unpublished manuscript. Washington, DC: World Bank. 40 Water Scarce Cities: Thriving in a Finite World Cape Town, South Africa. Source: https://pixabay.com/en/south-africa-cape-town-2267795/. Chapter 4 Cross-Cutting Considerations Though we often identify successful water scarce cit- cities. Finally, active involve- successful water scarce ­ ies by the technological approaches they’ve applied to ment of water scarce utilities in managing their harness a specific source or maximize its use, the fac- resources will require both a clear institutional frame- tors of success often lie beyond technology i ­tself. work within which it can operate, and in an integrated Innovative water managers must expand their exper- manner that works with institutional partners and tise from engineering to marketing and public ­stakeholders. ­ relations. Sustained communications campaigns can demystify a city’s decisions about water resource plan- The experiences show that this ning, and increase public trust in regulatory actors and paradigm exists and has devel- The different cases stakeholders. Closer to decision makers’ concerns, the ­ oped organically, but also that presented in this report systematic comparison of the economic costs and ben- scrutiny and comparison reveal outline more than efits of alternative solutions still seldom happens, the cross-cutting issues that successful technological mainly due to data availability, but also simply the dif- form the backbone of these advances. In these success ­ ficulty of assessing “soft” ­ options. Proper economic successes. This section outlines ­ stories, the principles analysis can better underpin the development of inno- these key takeaways to inform of a water resource vative and diverse financing mechanisms, inspired by the principles of a new water management paradigm for the myriad of experiences across some of the most management ­paradigm. emerge. cities begin to ­ Water Scarce Cities: Thriving in a Finite World 41 Technology Is Not the Major Concern Importance of Inclusion and Good Communication Though we often identify successful water scarce cities by the technological approaches they’ve Widespread communication efforts are stepping applied to harness a specific source or maximize its ­cceptance. Such communication stones for social a use, the factors of success often lie beyond campaigns demystify a city’s decisions about water technology. Though some approaches, such as aqui- ­ planning. They target the public’s potential resource ­ fer recharge and wastewater reuse, require careful doubts early on, while offering a platform for consum- preparatory work from a technical standpoint, this ers to ask questions and provide ­ feedback. They also seldom has to do with the technology and often is help secure public support and understanding of pro- more of a planning, governance, or social acceptance grams and investments that normally exceed the polit- ­ issue. Furthermore, many good examples exist in ical cycle, thus avoiding drastic alterations when both low-income and upper-middle-income coun- elections bring political changes before the projects are tries, which create good opportunities for knowl- completed. One of the key success factors of the out- ­ edge exchanges and m ­ entorship. For example, an reach campaign in the OCWD was its early launch, exchange program has been established between the nearly 10 years prior to the IPR project startup, and its Singapore Public Utilities Board (PUB) and continuation throughout the project’s life to maintain California’s Orange  County Water District (OCWD) support through all accessible communication so that the two agencies continue to learn from each channels. Research from Singapore shows that public ­ other’s innovations in the field of ­ reuse. In general, acceptance of wastewater reuse depends highly on the technology is often tried and true, with research public trust in regulatory actors and stakeholders, as ongoing and closely supporting the validity of a well as their understanding of technology and poten- given approach, but challenges lie in the way such tial ­impacts. results are communicated to the public and used in Though Windhoek’s program has been ongoing for field. advancing the ­ decades, the city still engages regularly with the media so customers are aware that drought conditions are The success of a technological solution, no matter still effective, leading to mindful water ­ use. how appropriate to the context of a city, relies on ­ ublic. In both San Diego and Los support from the p When changes will impact customers’ service or bills, Angeles, California, proposed indirect potable reuse this communication channel helps avoid dissatisfac- (IPR) projects were shut down in the 1990s due to tion by promoting understanding and awareness of public outcry and negative media portrayal of the the changes early o ­ n. In Perth, Australia, a water ­ ap.” It took San Diego years of projects as “toilet to t policy unit was established in the early 2000s to sup- ­ damage mitigation, through a strong public outreach port and coordinate the government policy response campaign and a new demonstration project, to gar- to the water ­ c risis. The nursery, turf, and irrigation ner support from its customers again—despite the industries’ initial resistance to proposed restrictions proposed technology’s proven success in other places on domestic garden watering was overcome by genu- such as Orange County, Singapore, and Windhoek, ine engagement through this u ­ nit. Such approaches ­Namibia. Therefore, innovative water managers must can also warn customers of upcoming rate increases expand their expertise from engineering to market- by justifying the reasons for changes (including new ing and public relations if they are to promote new sources or technology, environmental remediation, solutions ­successfully. or a new tax) and giving them the opportunity to 42 Water Scarce Cities: Thriving in a Finite World ­ ut. Such participatory models can even be speak o alike. much more interesting to industry and cities ­ applied in the form of citizen juries convened to Beijing now reuses 66 percent of its wastewater in non- co-design water investments, shape services and potable applications, accounting for 22 percent of the prices, as is now the case in Yarra Valley, east of capital’s water supply, and has renamed all wastewater 2017). Melbourne, Australia (Yarra Valley Water ­ plants.” treatment plants (WWTPs) “water purification ­ (GWI 2017) Comparing the marginal cost of a variety of Involving constituents early in the process builds own- water supply options to close the 2030 water resources decisions. ership over a city’s water management ­ gap, projections show that traditional water supply Before infrastructure projects or significant changes in sources would be costly, with many bearing a cost over the water authority’s practices are approved, the $10 per m3 and steep marginal cost curves compared to Southern Nevada Water Authority (SNWA) board of efficiency solutions (2030 Water Resources Group directors always appoints a citizen advisory commit- 2009). Similarly, the construction of pipelines for ­ tee to represent different stakeholders through the long-distance water transfers is eclipsing the costs of decision-making ­ process. Their recommendations developing local water supplies, especially as competi- influence all important water management decisions, tion over that water ­ increases. including the construction of new water management infrastructure, the development of new water The costs of most solutions vary dramatically across resources, water quality measures, and rate ­ increases. regions and cities, rendering direct comparisons In several instances, these committees play the role hazardous. Beyond direct costs for water abstraction ­ that the court has played in other states by bringing all or collection and treatment, factors may include the interested parties to the table before a decision is made need for complex intake systems (including river and avoiding future ­ lawsuits. dams) and the scale of conveyance ­ systems. Zhou and Tol (2005) suggest, as a rule of thumb, to adopt a cost Inclusion promotes good governance by holding city $0.08 per m3, for 100 kilome- of ­ ­ccount. In Murcia, Spain, the decision makers to a ters of horizontal transport and Mancomunidad de Canales del Taibilla (MCT) incorpo- $0.06 per 100 meters of vertical ­ Identifying the relevant rates local, regional, and national government repre- transport, on the basis of a 100 stakeholders early and sentatives in decision-making bodies, facilitating million m3 per year ­conveyance.1 having them communicate trust  and cooperation among different competent regularly with the public The variability of electricity authorities. Such stakeholder involvement promotes ­ contributes to acceptance prices, driven by power genera- transparency and limits future opposition by opening of a new approach and tion technologies and levels of discussion. debate early in a collaborative ­ helps sustain certain subsidies, further complicate ­behaviors. comparisons. ­ Discussions in Good Economics Is Key this chapter attempt to capture orders of magnitude of the different solutions, as illus- In many areas of the world, growing water scarcity trated in figure ­ 4.1. impacts the availability of freshwater resources and shifting costs so that nonconventional solutions are For surface water solutions, conventional water treat- becoming more affordable than the expansion of con- ment plants typically cost in the order of $10 million ventional ­ ones. In the most water scarce provinces of per 100,000 people, resulting in a total cost China, freshwater withdrawal quotas are driving the capital  expenses [CAPEX] plus operating expenses (­ price of freshwater up and rendering wastewater reuse $0.30 cents per ­ [OPEX]) of  ­ m3. Exceptions abound Water Scarce Cities: Thriving in a Finite World 43 FIGURE ­­4.1. Total Cost of Water Production for Various Solutions 6 5 Total cost ($/m3) 4 3 2 1 0 er er e n e e e g rg us us ur io tin at at at pt ha re re es w w lin ca ec nd le e rv e bl ac sa ab rr ha er ou ta rf de fe at ot Gr er po Su ui w np er at m Aq ct at No w or re aw in St di Ra Se In Source: World ­­Bank. research. Total cost includes capital Note: Vertical bars capture common scheme values; vertical lines span extreme values identified in the present ­­ expenses. expenses and operating ­­ however: in the city of Erevan, Armenia, where water Reuse schemes have experienced significant reductions can be supplied by gravity from a high-quality water in costs, benefiting from advances in energy efficiency $0.01 per ­ spring, costs are as low as ­ m . By contrast, in 3 2 technology and from the development of membrane Windhoek, total costs with water conveyance of inter- bioreactors ­ (MBRs). IPR projects have higher CAPEX basin water supply from the Okavango River are esti- than nonpotable reuse due to more advanced treat- mated at $ ­ 3. For groundwater supply solutions ­ 3.8 per m ment costs, which are estimated to be at 10 percent to ­ 0.1 and $ costs, commonly span between $ ­ 0.4 per m , 3 15  ­ percent more than nonpotable water reuse (GWI $2.0 per m with deep and distant aqui- but can exceed ­ 3 2017). With direct nonpotable water supply applica- ­ fers, such as in the proposed Tsumeb supply scheme in tions, specific, “purple” conveyance and distribution ­Windhoek. infrastructure needs to be factored in the cost of the solution. Costs have been found between $ ­ ­ 0.25 per m3 Reverse osmosis is the most competitive seawater $5.1 per m3 in Australia in California (GWI 2017) and ­ low. Thermal desalination technology where salinity is ­ (Moran 2008), with most common costs being found desalination is costlier in terms of capital investments, $0.60 per m3 and ­ between ­ $2.20 per m3 (GWI ­2017). but it is better adapted to high salinity sources and has the highest economy of scale for megaprojects (Cosin significant developments Stormwater capture has seen ­ ­ $0.6 per m3 2016). Costs typically range between ­ in California, where stormwater capture schemes have (achieved in Israel with a production capacity above ­ 0.01 per m3 to more been found to cost in the range of $ ­ 2.0 per m3 600 million liters per day) and more than $ than $10 per m3, depending largely on the scale for smaller units, generally below 30 million liters per 2009). The (Atwater 2013; Dillon and Australia NWC ­ day. These costs do not include conveyance ­ ­ needs. needs for water treatment and conveyance also 44 Water Scarce Cities: Thriving in a Finite World ­ ariability. When stormwater cap- contribute to cost v analysis. Because reducing network losses and conser- ­ ture is combined with managed aquifer recharge, costs vation measures rely on soft components implemented include infiltration and underground storage, which over the long term, they are difficult to isolate as spe- ­ eterogeneous. Stormwater capture and are highly h cific budget line ­ items. For example, though the Las $0.06 per m in recharge schemes range between ­ 3 Vegas, Nevada, water utility has reduced per capita Marrakesh, Morocco (Dahan and Grijsen 2017), and water consumption by close to 40 percent since 2002 ­ $2.67 per m in Australia (Ross and Hasnain ­ 3 2018). through a mix of water pricing, regulation, incentives, and education, the portion of savings attributable to Costs for rainwater harvesting depend on the types of each and the associated costs distribution are difficult ­ roofs and storage s olutions. Rainwater harvesting ascertain. Since demand management and infra- to ­ has  been priced (CAPEX plus OPEX) in cities in structure efficiency represent “untapped reservoirs” $1.75 per m3 Australia and the Pacific region between ­ for cities and can significantly extend the use of exist- ­ 10.75 per m3 (Moran 2008), which is consistent and $ ing conventional resources, there is strong incentive to with the range of costs reported in arid areas by Gould creatively think about how to economically evaluate and Nissen Petersen (1999), as updated by IRC authors such ­interventions. (2011). Batchelor, Fonseca, and Smits ­ Systematic comparisons of the economic costs and Diversifying Sector Financing Strategies benefits of alternative solutions seldom happen, Before considering costly infra- despite being critical to optimize the use of water and structure development options Innovative applications resources. Data availability, if not tackled financial ­ for supply augmentation, of wastewater reuse can early in the planning process, constrains decision mak- increasing sector efficiencies also help bridge water ers’ ability to conduct a thorough economic analysis, through improved water man- resources gaps at an and policy windows tend to dictate water  resources agement often yields economic optimized ­price. ­ ustifications. Including choices more than cost-benefit j and financial efficiencies. ­ data gathering activities in upstream planning can bol- In  2006, it was estimated that reducing nonrevenue ster decision making with key economic i ­nformation. water levels by half in low-income countries could gen- However, even in the largest water systems, economic erate an additional $ ­ 2.9 billion in cash every year for analysis methodologies incorporating multiple objec- the water sector, from both increased revenues tives and complex factors such as tradeoffs between and reduced costs (Kingdom, Liemberger, and Marin urban and nonurban water users, environmental 2006). Similarly, Southern California service provid- ­ externalities, and climatic and other uncertainties can ers include nonrevenue water and demand manage- ­ lanning. This is happen- effectively guide long-term p ment as “additional” future sources: the water saved ing, for example, in the Valley of Mexico, where an from efficiency improvements and reduced con- integrated water security and resilience strategy is sumption is water that can serve users without being developed to improve the reliability, robustness, increasing the city’s ­ allocation. resilience, and sustainability of the water system, California’s West Basin Municipal Water District pro- which supplies 22 million inhabitants in the Mexico vides a menu of five types of water, wherein clients area.3 City metropolitan ­ can purchase reclaimed water at different quality lev- The lack of information on the costs and benefits of els, based on the use it will be put to (for example, irri- demand management and infrastructure efficiency gation, general industry, groundwater replenishment, interventions further complicates economic efficiency cooling towers, boiler-feed ­ water). The uses require Water Scarce Cities: Thriving in a Finite World 45 varying treatment intensities and the tariff is adjusted NEWater plants were owned and operated by PUB, accordingly, providing a secure and tailored water the fourth and fifth plants were built under a design– ­ source for nearby municipalities and i ndustries. In ­­ build–own–operate (DBOO) model. The main motiva- Durban, South Africa, the concession of a recycled tion to involve the private sector was to develop a water treatment plant for industrial reuse has pro- water industry that would provide quality and cost-­ vided local industries such as Mondi Paper with a effective services and to encourage greater efficiency ­ stable water source cheaper than potable water sector. and innovation in the ­­ ­(eThekwini W&S ­2011). This project has ensured indus- Vendor-based finance for the development of desali- tries would not leave the area due to lack of water, nation or wastewater treatment facilities is still thus safeguarding the local economy and jobs depend- relatively ­ limited outside of industrialized or ing on these ­ industries. In addition, it has enabled resource-rich nations, with the notable exceptions eThekwini Water and Sanitation (W&S) to reallocate 2017). Across the of China, Mexico, and Brazil (GWI ­­ freshwater resources to unserved areas and avoided Middle East and North Africa region, the practice is the construction of a costly marine outfall (Bhagwan already well established in Algeria and is emerging 2012). Through the concession model, eThekwini W&S ­ ­­ in Morocco, Tunisia, and Jordan. The water sector has also secured a source of revenue from efficiencies has historically relied on public financing, which is sector. initiated by the private ­ ­­ now largely outstripped by investment needs. A Private finance is a large untapped source that could common obstacle to the development of ven- help fill the water sector infrastructure financing gap dor-based finance is the lack of predictable and suf- c ities. Vendor-based financing, through in many ­ ficient tariff-based revenues to cover water build–own–transfer schemes (BOT), for example, production ­­ costs. In such case, the tax payer is have been crucial in mobilizing the necessary financ- expected to make up the difference, which entails a ing for many desalination facilities, and for some significant political risk for any private investment wastewater recycling ­ plants. Public-private partner- project. More generally, to access private financing ­­ ships (PPPs) have been a key feature of the Israeli vendor-based capital (including, but not limited to, ­ water reform, in particular to finance CAPEX and finance), actions that improve sector governance improve overall ­ performance. The seawater desalina- and efficiency should be prioritized to improve ser- tion program was financed through BOT schemes, vice providers’ ­­c reditworthiness. raising $1,300 million in private ­investment. Mekorot, the national water company, and the corporatized Sector Institutions Need to Adapt to regional utilities are now financed through commer- These New Challenges cial debt with private banks or bond issuances, with- A proper institutional setup that defines roles and out sovereign g ­ uarantees. Finally, subcontracting by responsibilities is essential for the management of scar- water utilities is encouraged to improve operational city situations and for emergency ­­ responses. Following performance and reduce costs; today, private contrac- the same criteria used to justify a change in the para- tors perform a large portion of the tasks of the digm and the need for management techniques and most-advanced Israeli water ­­ utilities. approaches different from what has been the “business Singapore has also relied on the private financing to as usual” of a city’s water utility and services, this paper services. PUB purchases desalinated water improve ­­ argues that the institutional setup under which these from the private sector, which built and now operates services are delivered needs to adapt to the new realities ­­ the desalination plant. Similarly, though the first three situations. and challenges presented by water scarcity ­­ 46 Water Scarce Cities: Thriving in a Finite World Three of the principles for action provide the main ele- different users is clearly assigned to the river basin ments for the setting and framework for the institu- Segura). Its agency (Confederacion Hidrografica del ­­ tional setup: (a) the need to look beyond the city limits; regional perspective was developed one step further (b) demand management and infrastructure efficiency with the creation of the Mancomunidad de Canales as key elements of preparedness and response; and (c) del Taibilla (MCT), a regional agency entrusted with sources. The following paragraphs diversification of ­­ producing and delivering potable water in bulk to the present options for city managers to consider in this numerous municipalities in the region, which are ­­ respect, as well as relevant experiences. From these utility. The distributed by their respective water ­­ experiences a logical approach would be to propose common elements in these two cases and several ­ creating three focal points of responsibility within the other similar ones, notably in the United States, are management structure of the utility, to be in charge, the existence of (a) a strong and unified voice to pres- respectively, of (a) resource mobilization and external ent and defend the needs and position of urban users relations; (b)  demand management and infrastruc- (the cities) versus other users (notably agriculture); ture  efficiency; and (c) resource augmentation and (b) a negotiating table at a river basin authority in ­­diversification. allocations and resource management deci- which ­ sions are taken; and (c) established and transparent The need to look beyond the city limits to address rules for the allocation (and trading) and manage- scarcity situations and respond to emergencies is ­ ment of  ­­ resources. For this purpose, at the utility obvious. However, it presents special complications, ­­ level, the traditional roles of the units responsible for since, in most cases, it involves responsibilities and bulk supply need to be expanded to carry out jurisdictions that exceed the authorities normally the  external relations with other users and river vested on city officials and ­­institutions. The Singapore basin agencies, incorporating new functions such as Public Utilities Board (PUB), the single agency negotiating for additional transfers, water trading, or responsible for all aspects of supply and sanitation— overall management and monitoring of shared from source management to reuse—is an exception to resources, therefore establishing a responsible focal the general situation, which is better illustrated by point that coordinates internally these areas and one in which one agency is responsible for water ­represents externally the ­­utility. resource management and allocation, often at the scale of the river basin, while the city is one among To a great extent, actions that many users of the same resources. ­­ Malta, despite its contribute to the efficient func- Demand management and small size and high degree of urbanization, divides tioning of the network (such as ­infrastructure efficiency the roles of resource management and allocation, loss reduction, sectorization, have been highlighted as retained at the level of a government agency, from and pressure management) are elements of response key ­ those of service delivery. Service delivery is assigned part of accepted practice for a to scarcity ­­situations. to the Water Services Corporation, a public entity well-run utility, which need to responsible for the complete drinking and be scaled up in cases of scarcity, even if the opportunity waste water cycle in the Maltese Islands. ­­ It produces cost of the additional supply saved through these and distributes potable water and collects and treats ­­ actions is lower than the existing tariffs. However, the wastewater of over 250,000 households, busi- many other elements, particularly those aimed at nesses, industries, hotels, and so on, serving over reducing consumption, require techniques (such as 420,000 ­­ people. In Murcia, the responsibility for public campaigns, flow limitators, and economic water resource management and allocation among incentives) that are not part of what has been Water Scarce Cities: Thriving in a Finite World 47 usual.” These added techniques could “business  as  ­­ utility for the planning and implementation of the have significant negative impacts on the utilities’ finan- investment programs associated to resource augmen- cial situation by discouraging consumption, particu- diversification. The Malta Water Services tation and ­­ larly among the highest users, which are normally Corporation combines several different sources those that contribute the most to revenues (and which (desalinization, groundwater, wastewater reuse) to ­­ are subjected to the highest tariff blocks). Examples guarantee supply and has adopted a plan to further abound, however, of utilities that have been successful increase the contributions from desalinization and in drastically reducing their consumption while retain- reuse. Singapore has adopted the policy wastewater ­­ ing financial viability and quality of service for consum- of “four national taps,” aimed to achieve flexibility in ers (Zaragoza, Spain, is one example to watch). ­­ Utilities the supply and allow PUB management the possibility need to adapt their institutional structure to incorpo- of using the option that better responds to particular rate and coordinate the seemingly c ­ ontradictory initia- costs. Responsibility for situations and offers lower ­­ tives of demand management and  maintain the resource augmentation and diversification should utilities’ profitability, beyond the ­ traditional functions thus go beyond the investment phase and into the billing. The of network management, metering, and ­­ actual management of which combination of sources creation of a point of focal responsibility in the utility’s ­ to use with those objectives in mind, as well as into management structure for the  functions of demand the planning for future scenarios and potential management and infrastructure efficiency seems to be ­­emergencies. an efficient approach to address the many issues involved and plan and implement demand manage- ment and infrastructure efficiency actions in a coordi- Integration Is a Critical Enabler ­­ nated and efficient manner. Linked to these, tariff Dependence on resources shared at the basin scale structure issues and service delivery standards and means water resource management must take the river objectives should be part of the responsibilities basin scale into account, which requires specific insti- point. assigned to this focal ­­ tutional ­­ structures. To thrive as a stakeholder within a river basin, a city needs to secure municipal demand in Whether it is part of a medium-term resilience plan ­­ the face of other interests. Through river basin organi- aimed to adapt the city to growing water scarcity or zations, all users have access to a platform where their an emergency response, augmentation of available interests can be considered and uses prioritized resources, but especially diversification, are among according to the corresponding value of the water the main tools in the hands of the utility ­­ managers. user. The and,  often, the political clout of each ­­ Many of the alternatives considered (aquifer organizations provide flexibility and adaptive capac- ­ management and recharge, storm water capture, ­ ity, facilitating the reallocation of resources between desalinization of sea water, reuse of treated wastewa- places, users, and periods of use in response to evolv- ter) involve new technologies that go beyond the tra- ing needs, and the potential to adjust demands to ­­ ditional engineering practices used in most cities. available ­­resources. Additionally, because of the innovative nature of these technologies and the reduced number of sup- A successful institutional setup for the management pliers available, these investments have specific pro- of water scarcity situations requires effective man- curement requirements if efficiency is to be achieved. ­­ agement of water resources by a river basin agency Therefore, it is good practice to designate a focal point and involvement by a water supply and sanitation of responsibility in the management structure of the (WSS) service provider to ensure available resources 48 Water Scarce Cities: Thriving in a Finite World ­ dequate and ­­ are a secure. Where different uses are and the Orange County Sanitation District (OCSD) competing for finite resources, this structure contrib- helped identify wastewater reuse as a key cost utes to define and enforce equitable and efficient saver  for the water district—by securing a new allocations, and to maintain checks and balances drought-proof source of water—and for the sanita- users. Murcia provides a good example of between ­­ costs. tion  district—due to avoided seawater outfall ­­ such a paradigm, with the regional bulk water sup- In Brazil, aligning stormwater drainage and solid plier, MCT, representing the interests of all urban waste management investments has helped with water service providers to the river basin ­­ agency. The wastewater treatment by controlling the inflow of creation of this strong regional public entity was crit- trash and stormwater entering the WWTP system ical not only to garner public and political support in 2017). Planning for urban development can (Tucci ­­ water allocation processes but also to mobilize suffi- ­­ also facilitate future service provision. Windhoek cient funding to undertake costly infrastructure wants to promote the decentralization of industrial ­­ investments. Such integrated models and metropoli- growth to alleviate pressure on water resources in tan-wide approaches can be particularly relevant in certain concentrated zones of its service ­­area. By con- urban areas composed of multiple jurisdictions and trast, the Singapore PUB is one of the few agencies in WSS service ­­providers. the world that manages all aspects of water resources, which facilitates decisions about water source diver- Because wastewater management is handled by a sification and urban service planning. ­­ regional sanitation company, the benefits of pollu- tion control are linked to the river basin scale at which Beyond a change in contractual mandates, water scar- they are ­­accrued. In Malta, the size of the ­country encour- city management principles need to be reflected in the ages the centralization of service provision responsibili- service providers’ internal organization, processes and ties—from abstraction to wastewater t under ­reatment—​ ­­ incentives, and corporate culture. Water service provid- the Water Services Corporation, though all decisions are ers have traditionally been dominated by urban hydrau- checked by the Energy and Water Agency, the de facto lics engineering and planning functions, with a linear water resource management ­­ entity. management focus on obtaining, treating, delivering, collecting, and retreating water in a financially sustain- When water use is dominated by one main municipal able way. ­­ ­orporate Key performance indicators and c user, the same entity may manage service and resource service-related efforts have been geared toward direct ­ allocation, and thus have incentive to manage water targets and processes, leaving broader sustainability and ­­ resources efficiently. Such models exist in Singapore resilience aspects as secondary considerations under the and Las Vegas where creating a unified front in water diluted responsibility of water sector and urban manage- negotiations with other countries or states, respec- ment agencies. ­­ A detailed review of this transforma- tively, has been critical, motivating the integration of tional process among effective service providers of services and resource management under the same water scarce cities will provide valuable insights to sup- ­­ entity. If scale allows, these arrangements streamline port the paradigm shift outlined in chapter 2. ­­ allocation negotiations—with all interests centralized Finally, because an integrated approach to urban water in one agency—and promote ­­ transparency. management likely requires institutional changes and Integrating municipal water management with other reforms, political will and champions are needed to services can identify synergies and promote a circu- environment. catalyze and sustain the right enabling ­­ economy. In Orange County, joint planning lar ­­ In recognition of the strategic importance of the water between the OCWD (in charge of bulk water supply) crisis in Perth, a water policy unit was established in Water Scarce Cities: Thriving in a Finite World 49 the Department of Premier and Cabinet of the State of at  the Mediterranean Regional Technical Meeting, Marseille CMI, December 12–14. Western Australia in the early 2000s to support and coordinate the government policy ­­response. Singapore Dahan, S., and J. Grijsen. 2017. Managing Urban Water Scarcity in Morocco. Washington, DC: World Bank. leadership elevated water security as a top strategic Dillon, P., and Australia NWC (National Water Commission). 2009. priority for the country, which facilitated the planning Managed Aquifer Recharge: An Introduction. Canberra, Australia: reforms. and implementation of its broad sector ­­ National Water Commission. eThekwini W&S (Water and Sanitation). 2011. “The Durban Water Recycling Project.” eThekwini W&S, Durban, South Africa. Notes Gould, J., and E. Nissen-Petersen. 1999. Rainwater Catchment Systems for 1. Costs for vertical transport would be the least impacted by econo- Domestic Supply: Design, Construction and Implementation. London: volumes. mies of scale in terms of transported ­­ Intermediate Technology Publications. 2. World Bank ­­calculation. GWI (Global Water Intelligence). 2017. “Desalination & Water Reuse.” 3. Project information document describing the project available at the GWI, Oxford, U.K. following URL: ­­http://documents.worldbank.org/curated/en/7367115​ 1630 ​ 2 537958 ​ / pdf/Project-Information-Document-Integrated​ Kingdom, B., R. Liemberger, and P. Marin. 2006. The Challenge of -Safeguards-Data-Sheet.pdf. Reducing Non-Revenue Water (NRW) in Developing Countries. Washington, DC: World Bank. Moran, A. 2008. “Water Supply Options for Melbourne: An Examination References of Costs and Availabilities of New Water Supply Sources for Melbourne 2030 Water Resources Group. 2009. Charting Our Water Future: Economic and Other Urban Areas in Victoria.” Institute of Public Affairs, Melbourne, Frameworks to Inform Decision-Making. Washington, DC: 2030 Water Australia. Resources Group. Ross, A., and S. Hasnain. 2018. “Factors Affecting the Cost of Managed Atwater, R. 2013. “Southern California Water Committee Stormwater Aquifer Recharge (MAR) Schemes.” Sustainable Water Resources Capture Opportunities.” Presented at the Southern California Management. doi:10.1007/s40899-017-0210-8. Environmental Dialogue, Los Angeles, April 24. Tucci, C. 2017. “Stormwater and Flood Management.” Presented at World Batchelor, C., C. Fonseca, and S. Smits. 2011. “Life-Cycle Costs of Rainwater Bank Water Week 2017 Conference, “Operationalizing IUWM for TTLs Harvesting Systems.” Occasional Paper 46, IRC International Water and and Their Clients.” Sanitation Centre, WASHCost and RAIN, The Hague, The Netherlands. Yarra Valley Water. 2017. “Citizens Jury to Help Determine Water Services Bhagwan, J. 2012. “Durban Water Recycling Project.” Water Research and Pricing.” Yarra Valley Water, Melbourne, Australia. Commission, Pretoria, South Africa. Zhou, Y., and R. S. J. Tol. 2005. “Evaluating the Costs of Desalination Cosin, C. 2016. “Desalination Technologies and Economics: CAPEX, and  Water Transport.” Water Resource Research 41: W03003. OPEX & Technological Game Changers to Come.” Presentation given doi:10.1029/2004WR003749. 50 Water Scarce Cities: Thriving in a Finite World Centuries-old cistern in Hababa, Yemen. © Bill Lyons/World Bank. Chapter 5 Conclusion Skyscrapers, urban populations, and temperatures Despite the daunting challenges outlined, this report are rising faster than ever. Up close, Earth’s cit- does not set out to evoke feelings of doom and gloom. ies buzz with activity and growth, while urban lights Rather, it shows the successful approaches many boldly shine from space. Although human societies cities have followed to shape a water secure future, ­ are growing and thriving, water scarcity is a persistent less vulnerable to the vagaries of rainfall, the likely problem that plagues cities worldwide. Effectively effects of climate change, and ever-increasing water managing water scarce cities has been a notoriously demands. challenging puzzle through the ages and is increas- Sometimes the most difficult problems have simple solu- ingly difficult. tions; addressing urban water scarcity does not rest Global metropolises have been struggling for their very solely on costlier infrastructure and complex technolo- survival against water scarcity. Headlines document- gies. Efficiency gains at all levels (including water ing drought and water shortages are ubiquitous. From demand, allocations, and infrastructure), improved Rome, Italy, to Cape Town, South Africa, stories of cooperation with other water users, or optimized ground- deficient water supplies abound, while Brisbane, water management can go a long way. Major gains in the Australia, is on the edge of a severe drought. cost reductions of nonconventional sources such as Although an abundance of water can boost economic desalination and reuse are game changers. Many solu- prospects and public health, lack of water can be tions for water scarce cities are already accessible and debilitating. less costly than traditional infrastructure approaches. Water Scarce Cities: Thriving in a Finite World 51 There has been an explosion of innovation and knowl- to more integrated and better incentivized utilities will edge in water scarce cities, and the opportunity is ripe add support to dialogue on credit worthiness and access to unleash the potential for their replications. Water to private financing (local market) to finance infrastruc- utility managers need to move away from a passive ture development needs. reliance on historical water allocations and take If we pay close attention, water shares many lessons. responsibility to generate “new water” through appro- Water cooperates. Water nourishes. Water is per- priate and innovative measures. They must become sistent as it carves into seemingly impenetrable active players in the water resource management surfaces over millennia. Water adapts to its environ- debate, seek synergies with other sectors and users, ment, as it flows effortlessly beyond obstacles in and master communication with the public to spur its  pathway. Through the lens of water, the Water broad acceptance of water management decisions. Scarce  Cities (WSC) Initiative seeks to shed light on Research focusing on the shifts undertaken in terms of effective water management strategies in a changing service providers’ contractual mandate and performance world, to emulate knowledge exchange between obligations, internal organization, processes and incen- cities, and to encourage water utilities to become the tives, and corporate culture will be most useful to help empowered agents of change needed to challenge guide water scarce cities toward water security. This shift cities’ water scarce destiny. 52 Water Scarce Cities: Thriving in a Finite World W17100