Wittenbach: a corporation running the business - Switzerland

Year of publication: 2000

At the end of the nineteenth century rural communities in Switzerland started to construct improved water supply networks. Based on these local initiatives an institutional framework evolved which until today leaves much of the responsibility for the management of water supply services at village level. In the village of Wittenbach water supply is being managed by a corporation.

• The initiative to construct a water supply network in Wittenbach was user driven. The people of Wittenbach were highly motivated to maintain and improve their network.
• The main motivation to start building water supply networks in the 19th century was to have a reliable water supply for cattle and to ease people's daily lives. Only later improved health was considered to be a positive side effect.
• Fire protection was a driving force for bigger reservoirs and larger pipes. All water supply networks were designed to meet the demand of households and of the fire brigade. The Fire Protection Assurance organization is now one of the main actors in the field of water supply.
• A group of around 20 people injected the money for the first network project and founded the corporation. They were part of the local elite of wealthy and progressive people, which had been formed by the process of industrialisation.
• Legal protection of private ownership (of land and springs) has been a driving force for the spread of water supply networks.
• For initial investments the availability of credit was important. Later village savings prevented corporations and municipalities from paying loan interests.
• Network designs were generous and used high-quality materials and skilled labour, which enabled water supply networks to keep up with increased demand.
• Operation, maintenance and rehabilitation are executed by the private sector. Duties are clearly defined in contracts and private companies still need permission of the president of the water corporation to act on complaints from the public.
• The roles of users, corporations, municipalities and service providers are clearly defined.
• Water has been the source of many conflicts between neighbouring individuals and communities. The Wittenbach corporation often had to act as a peace maker. The judicial system of the Swiss government provides a coherent, consistent and stable legal framework for conflict resolution.