Providing safe, affordable drinking water as well as wastewater treatment services represents a necessary but costly endeavor, as these services often represent a key factor in a locality’s economic and public health. For its proponents, privatization offers a financial tool and a management technique. Although it offers great potential, it is not a panacea. Privatization may be a sound policy choice for public officials seeking to promote economic growth and community development. However, localities must evaluate the various options and make an informed decision of what is best for their community.