CHAPTER XX 

 COMPETITION OF LOCAL SOURCES OF SUPPLY 



A large consumer is profitable at any rate which produces a result that 

 will add to the net revenue of the plant even though the rate is below the 

 average. John N. Chester, Jour. Am. W.W. Assn., 1917, p. 317. 



A PUBLIC water-supply system is commonly supposed to be 

 a monopoly, and therefore not subject to competition. As a 

 matter of fact, the monopoly is seldom complete. The compe- 

 tition of private local sources of supply is often keen, and it 

 makes an important difference in revenue and rates. 



There are some urban communities where the local sources 

 of supply in private ownership, in the aggregate, do more busi- 

 ness than the public works. In almost every community there 

 are some local sources of supply. The greatest variations in the 

 amounts, qualities and costs of these are found. Even when 

 their quality is not such as to permit their continued use for 

 domestic purposes they continue to be used for the various 

 purposes for which they are suitable. Ordinarily such local 

 water is cheaper than water from the public works, and the 

 continued use and competition of these local supplies has been, 

 and still is, an important element in fixing rates. 



The peculiarities and irregularities in old meter rate sched- 

 ules are as often due to this condition as to any other. 



Kinds of Local Supplies. Both underground and surface 

 waters are used. Surface waters are drawn from lakes, streams 

 or local reservoirs. These are ordinarily deficient in sanitary 

 quality and are not suitable for domestic use, but they are 

 frequently soft and well adapted for manufacturing purposes, 

 for boiler feed water, for washing and for irrigating purposes on 

 suburban and country properties. 



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