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Abstract

Much has been written in the economic literature about pricing local public services. If a public service is defined as a public enterprise, or public utility, the management is often charged by statute to operate the enterprise in an economically efficient manner and to provide equitable service to all users. Locally provided wastewater service is an example of such a public enterprise. Given the range of constraints imposed on local officials by state and federal guidelines, standards, local institutional structures, one of the most effective tools for shaping local public enterprise policy and achieving efficient and equitable service can be the tool of price making for the local public service.

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