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CHICAGO — A new report from the Civic Federation finds that the fragmented governance of the water distribution system in Northeastern Illinois is threatening the affordability, efficiency, and equity of water access for the more than 5.5 million residents who rely on Lake Michigan for drinking water. The report highlights the urgent need for reform in how the region manages and delivers water – a basic human right.
The report examines the Lake Michigan Service Area, which spans 284 municipalities across seven counties, and operates through a patchwork of public and private entities. Though the Illinois Department of Natural Resources regulates water use and infrastructure permits, it lacks authority over pricing or coordinated service delivery. In the absence of a unified framework, municipalities are left to negotiate their own agreements, resulting in opaque pricing, inefficiencies, and inequitable outcomes. Residents of lower-income communities are disproportionately burdened, with some paying over ten times more than others just a few miles away.
“The water issue is one more example in a long list of reasons why Illinois doesn’t do governance well,” said Joe Ferguson, President of the Civic Federation. “We have a system where rates go unchecked and with no apparent rhyme or reason as to why residents in one municipality pay a wildly different rate from another. All of this puts more burden on an already overstretched tax base, leads to inequitable delivery and fees, and, in the long run, erodes public trust in government.”
The report does point to efforts underway to equalize the system. For example, the City of Chicago is currently working toward a cost-of-service model to ensure that wholesale water rates actually reflect the cost of water service delivery. However, this reform will only impact a portion of the region’s residents, pointing to the need for broad policy solutions over piecemeal changes at the margins.
“Governance of public infrastructure like water distribution is a make-or-break issue for Chicagoland,” said Dan Lurie, President & Chief Executive Officer of Metropolitan Planning Council (MPC). “We are fortunate to have the Great Lakes and leaders who understand the stakes. But as the Civic Federation's important work makes clear, we are a long way from getting it right, and the consequences are urgent. MPC is committed to working with the Civic Federation and other stakeholders to improve water governance, lower the costs for families, and strengthen our economy.”
The Federation’s report highlights a few models that Illinois could learn from. For example, Wisconsin has a state department that standardizes rates and increases transparency. Ohio has a unified funding framework that ensures equitable and consistent access to state resources, and Indianapolis has a fully consolidated water governance model that reduces costs and improves efficiency. These and other examples from around the country should be part of the conversation as Illinois works with its leaders and the surrounding Great Lakes region to improve the system.
With the release of this report, the Civic Federation urges policymakers, stakeholders, and the public to acknowledge the severity of the issue and recognize the urgent need for reform. Water is a basic human right and Illinois must confront its fragmented system that has left too many residents with high bills, limited transparency, and decaying infrastructure.