In Hyderabad, the water utility has increased coverage and improved performance in revenue collection, repairs and service provisions. Research in Maharashtra has shown that contracting out billing, repairs, water treatment and infrastructure updates can improve performance. The report points to the importance of effective regulation to manage water resources better. Though Bangalore applies a rising block tariff — subsidies benefit non-poor more than poor — the wealthiest of 20% of households receive 30% of water subsidy and the poorest 20% receive10.5%.

Involvement of citizens can make that vital difference: Citizens’ report card in Bangalore gave resident associations and community groups a voice in reforming their water utility and improving accountability.

The UN report calls for eradication of perverse subsidies on water that lead to its wastage. It says that if water were to be sensitively priced and regulated, it was unlikely that a water intensive crop like sugarcane would be grown on its current scale across Gujarat. “Because electricity subsidies tend to rise with the size of holding and depth of wells, they are highly regressive, wealthier the producer, the bigger the support,” it said. It says extending check dams across all of India’s rainfed farming areas would raise the value of the monsoon crop from $36 billion a year to $180 billion for an initial investment of $7 billion. It clarifies that rainwater harvesting does not make large dams obsolete.

“Given the very high poverty rate in rainfed areas, it was difficult to envisage another investment with more potential to enhance human development and extend benefits of India’s economic success into rural areas,” it said.