Arizonans Reclaim Local Control of Water; RWE Delays American Water Sale. (Food & Water Watch)

It's a new year, and the town of Cave Creek, Arizona is turning over a new leaf. The town delivered a victory for advocates of locally controlled water when it decided in late 2007 not to renew operating contracts with Arizona American Water, a subsidiary of American Water, the largest private water company in the United States. Instead, Cave Creek will run its two water systems locally.

"Customer-service issues will be dealt with by local staff who know the system," Town Clerk Carrie Dyrek told the Arizona Republic newspaper in November. Local officials have also noted that public ownership of the water systems would "save money for the town while improving service for the 4,200 water customers,"** according to the Arizona Republic.

The move puts Cave Creek in the ranks of other communities around the country that see local control of water as a better option for citizens than having their water systems controlled by American Water and its European parent company, RWE.

RWE, a multibillion-dollar German energy and utilities conglomerate, had planned to sell American Water through an initial public offering on the stock market by the end of 2007, but delayed the deal because the projected earnings were lower than RWE had hoped for. RWE board minutes obtained by Food & Water Watch last June showed the political resistance to privatization in the U.S. as a motivating factor in RWE's decision to sell American Water.