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		<title>The economics of water: Part 7, New York invents municipal finance</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-7-new-york-invents-municipal-finance.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-7-new-york-invents-municipal-finance.html#comments</comments>
		<pubDate>Fri, 18 Apr 2008 13:02:36 +0000</pubDate>
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				<category><![CDATA[Cities]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Infrastructure]]></category>
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		<category><![CDATA[New York City]]></category>
		<category><![CDATA[Urbanization]]></category>

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		<description><![CDATA[

[Continued from the previous Part 1, Part 2, Part 3, Part 4, Part 5, and Part 6.] 
&#160;
As we&#8217;ve seen so far in this extended series on the economics of water taking off from Duke law professor Jim Salzman&#8217;s article Thirst: A Short History of Drinking Water, since housing is what makes cities, infrastructure &#8211; [...]]]></description>
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<p><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued from the previous <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html">Part 1</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html">Part 2</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html">Part 3</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html">Part 4</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html">Part 5</a>, and <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-6-new-york-tries-private-infrastructure-finance.html">Part 6</a>.]<o:p></o:p></span></i> </p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As we&#8217;ve seen so far in this extended series on the economics of water taking off from <a href="http://www.law.duke.edu/fac/salzman/">Duke law professor Jim Salzman</a>&#8217;s article <i style="mso-bidi-font-style: normal"><a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970">Thirst: A Short History of Drinking Water</a></i>, since <a href="http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html">housing is what makes cities</a>, infrastructure &ndash; at its most basic, water and sanitation &ndash; is necessary for <a href="http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html">cities to scale upward</a>.<span style="mso-spacerun: yes">&nbsp; </span>The quintessential expanding city, <?xml:namespace prefix ="" st1 ns ="" "urn:schemas-microsoft-com:office:smarttags" /><st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place>, had to reinvent its water infrastructure repeatedly.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">5.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Infrastructure is vulnerable to man-made calamity<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As with <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>, urbanization and infrastructure spur innovations in technology.<span style="mso-spacerun: yes">&nbsp; </span>Aqueducts could flow water only downhill, but James Watt&#8217;s steam engine meant water would be pumped uphill too.</span><span style="COLOR: navy"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">In 1774 the city approved an ambitious plan for a steam engine-powered waterworks that would pump water throughout the city in aqueducts similar to those of <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Technological networks, be they paved roads, canyon-spanning aqueducts, or steam-powered pumps, take capital.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">To fund the public works, the city issued &ldquo;Water Works Money,&rdquo; the first paper money issued by an American city.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Finance and infrastructure go hand in hand.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Construction commenced but the timing could not have been worse.<span style="mso-spacerun: yes">&nbsp; </span>As the colonies descended into the Revolutionary War, the British occupied the city and destroyed the waterworks construction.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><st1:place w:st="on"><st1:state w:st="on"></st1:state></st1:place></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="British_troops_land_new_york" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbritish-troops-land-new-york-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">I hope you&#8217;re not expecting your wells to survive<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Following the Revolutionary War, water supply plans in the city stumbled along for over 15 years.<span style="mso-spacerun: yes">&nbsp; </span>Plans were proposed for public waterworks and carefully studied, but none funded.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">6.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Growth creates crisis; crisis creates political change<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:state w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York</span></st1:state><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> kept growing, and the urban water supply (like <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>&#8217;s before it) became overloaded:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Water from the Tea Water Pump was of increasingly poor quality, nor did the public wells provide an attractive option.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">By the Enlightenment, the connection between hygiene and disease had been scientifically established, which meant that epidemics also created political pressure &ndash; which, <a href="http://affordablehousinginstitute.org/blogs/us/2005/09/political_calcu.html">in this as in so many other cases</a>, translated into a political commitment to spend tax money.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">A yellow fever epidemic struck <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> in 1795 and many blamed the disease on the city&rsquo;s foul water and fouler streets.<span style="mso-spacerun: yes">&nbsp; </span>Tea Water price was also a major concern.<span style="mso-spacerun: yes">&nbsp; </span>As a letter to the <i>New York Gazette </i>decried in 1798, &ldquo;I pay for Tea Water Only About Six Pounds Per Annum; which, I think <b style="mso-bidi-font-weight: normal">a great tax for one small opinion.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span></b><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Now that the taxation did imply representation, those paying the taxes were quite reasonably demanding municipal service for it.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; mso-outline-level: 1"><span style="COLOR: navy">With citizens and business leaders demanding action, the city turned to privatization.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">In an alliance that would seem unthinkable years later, Aaron Burr joined with Alexander Hamilton and other prominent politicians of the day to drive through a <a href="http://affordablehousinginstitute.org/blogs/us/2005/07/public_private.html">public/private solution</a>.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As I&#8217;ve written in many contexts, government makes an excellent funder and regulator, but a less effective service provider. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">In an argument that would echo 200 years later in privatization debates, &ldquo;<st1:place w:st="on"><st1:city w:st="on">Hamilton</st1:city></st1:place> used his considerable influence to persuade the City Council that the municipality should not build its own water works because it could not raise sufficient capital through loans and taxes.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="Chernow_hamilton" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageschernow-hamilton-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Smart enough for a very fat biography<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As the terrific recent Ron Chernow biography shows, Hamilton was an organizational and financial genius &ndash; there&#8217;s a reason your ten-dollar bill shows the portrait of the first Secretary of the treasury, the man who more than any other set the United States government&#8217;s finances on a proper course.<span style="mso-spacerun: yes">&nbsp; </span>Though not above making a buck on his own, <st1:place w:st="on"><st1:city w:st="on">Hamilton</st1:city></st1:place>&#8217;s logic was very likely sound, especially given the challenges and complexity of municipal finance.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="Aaron_burr" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaaron-burr-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">If a buck can be made, why can&#8217;t I be the one to make it?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Burr then hurried a bill through the state legislature in three days.<span style="mso-spacerun: yes">&nbsp; </span>Authorized by the <st1:state w:st="on">New York</st1:state> state legislature and the New York City Council, the Manhattan Company, as the new organization would be called, was mandated in its corporate charter to provide <st1:place w:st="on"><st1:city w:st="on">New York City</st1:city></st1:place> with clean drinking water.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">The assumption seems to have been that water would be piped in from the <st1:placename w:st="on">Bronx</st1:placename> <st1:placetype w:st="on">River</st1:placetype>, since the water sources on <st1:place w:st="on"><st1:placename w:st="on">Manhattan</st1:placename> <st1:placetype w:st="on">Island</st1:placetype></st1:place> were now regarded as undrinkable.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">While this summary&#8217;s sketchy, it suggests that <st1:place w:st="on"><st1:city w:st="on">Hamilton</st1:city></st1:place> had in mind what we would now recognize as the municipal water company, a public utility. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Burr, however, was financially more ambitious.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">[Burr] directed only 10% of the Manhattan Company&rsquo;s $2 million assets toward investments in water works, relying on the Collect as the water source.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="Hamilton_burr_duel" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshamilton-burr-duel-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">I guess this means we&#8217;re not partners any more?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">This is more or less stealing, or to use the more polite term, &#8216;conversion of public moneys to private profit,&#8217; the more reprehensible since the Collect had been overused.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It&#8217;s also dangerously unhealthy, as I saw when in <st1:place w:st="on"><st1:country-region w:st="on">Kenya</st1:country-region></st1:place>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="Kenya_siphoning_dirty_water" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageskenya-siphoning-dirty-water-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Water vendor siphoning paper plant runoff into his tanks<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">The remainder was invested more profitably in local businesses.<span style="mso-spacerun: yes">&nbsp;&nbsp; </span>The company did the bare minimum to maintain its charter, laying only 23 miles of pipe in its first 32 years.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Here&#8217;s a classic regulatory problem: <a href="http://affordablehousinginstitute.org/blogs/us/2006/05/blasting_fannie.html">how do you keep a chartered private money within its remit</a>?<span style="mso-spacerun: yes">&nbsp; </span><a href="http://affordablehousinginstitute.org/blogs/us/2008/01/whos-next-part-1-the-gses-2007-buying.html">It&#8217;s problem we haven&#8217;t solved yet</a>, 225 years later.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Over time, this drinking water company gave up all pretence and developed into the powerful Chase Manhattan Bank.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="Chase_logo" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageschase-logo-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">It all started with a water franchise<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">From water to money, now that&#8217;s liquidity!<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Although the company wasn&#8217;t improving the water quality, its legal status was a valuable asset:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">While few people actually received Manhattan Company water, the company defended its monopoly power over water provision and, as the Manhattan Company&rsquo;s portfolio grew, Tea Water pumps were driven out of business.<span style="mso-spacerun: yes">&nbsp; </span>New Yorkers were thus forced to rely on the increasingly-revolting Collect Pond and local wells.<span style="mso-spacerun: yes">&nbsp; </span>People with money turned to imported soda water and well water mixed with liquor.<span style="mso-spacerun: yes">&nbsp; </span>As a historian of the era has described, <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyTextIndent" style="MARGIN: 0in 0in 0pt 1in"><span style="FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-size: 12.0pt">As for New Yorkers, drinking no more Tea Water and scant <st1:place w:st="on"><st1:city w:st="on">Manhattan</st1:city></st1:place>, it was once again back to street wells and carted spring water. <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> had entered the first American century with less good water than the Dutch had bequeathed to the English.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="New_york_1842" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-1842-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:state w:st="on"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">New York</span></st1:state></st1:place><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">, 1842, expanding north<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; mso-outline-level: 1"><span style="COLOR: navy">It took a series of disasters for the government to finally address water supply head on.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">7.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Public infrastructure arrived only after full-blown privatized infrastructure failed<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Networks are vulnerable to the tragedy of the commons:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="New_york_fire" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-fire.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">We could use some public water about now<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">In 1828 a large fire caused extensive property damage and a severe cholera epidemic in 1832 killed 3,500 people in <st1:state w:st="on">New York</st1:state> but only 900 in <st1:place w:st="on"><st1:city w:st="on">Philadelphia</st1:city></st1:place>, which enjoyed reliable public water supply and streets washed down daily.<span style="mso-spacerun: yes">&nbsp; </span>Mounting concerns over disease and inadequate water sources to fight fires forced the city&rsquo;s Common Council to revisit the challenge of providing reliable supplies of clean drinking water.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Following the recommendations of a state-appointed commission, a permanent Board of Water Commissioners was created and authorized [x] to raise infrastructure capital and [y] to condemn land in order to supply water to the city.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Those are significant powers, especially the latter.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="New_york_1856" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-1856-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:state w:st="on"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">New York</span></st1:state></st1:place><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">, 1856, still growing, needing more water<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Not only is this <a href="http://affordablehousinginstitute.org/blogs/us/2005/11/8_simple_rules.html">eminent domain for economic development</a>, it&#8217;s acquisitive eminent domain, with the city over-reaching its boundaries.<span style="mso-spacerun: yes">&nbsp; </span>A hundred years hence, the <st1:placetype w:st="on">Commonwealth</st1:placetype> of <st1:placename w:st="on">Massachusetts</st1:placename> would <a href="http://www.foquabbin.org/chronology.html">dam the Swift River</a> <a href="http://affordablehousinginstitute.org/blogs/us/2007/10/there-aint-no-such-thing-as-free-infrastructure-part-2-downstream.html">to create the Quabbin Reservoir</a>, in the process drowning several towns.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="House_on_truck_being_removed" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshouse-on-truck-being-removed-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">House being trucked out of the soon-to-be-flooded <st1:place w:st="on"><st1:placename w:st="on">Swift</st1:placename> <st1:placetype w:st="on">River</st1:placetype> <st1:placetype w:st="on">Valley</st1:placetype></st1:place><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Surprising even today, the condemnation authority extended beyond the boundaries of the city, for the water source lay upstream of <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> in Croton.<span style="mso-spacerun: yes">&nbsp; </span>By 1838, condemnation of 35 acres of land in the Croton watershed had been completed.<span style="mso-spacerun: yes">&nbsp; </span>The Croton Reservoir was a massive project, supplying 95 million gallons daily, yet only satisfied the city&rsquo;s water needs for a decade.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="Croton_spillway" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagescroton-spillway-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Croton, still used today<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; mso-outline-level: 1"><span style="COLOR: navy">The city then looked even farther north, to the Catskills and <st1:place w:st="on"><st1:state w:st="on">Delaware</st1:state></st1:place> watersheds.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">More echoes of <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>: the city kept growing, and its network reached ever farther afield.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="New_york_reservoir_map" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-reservoir-map-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Construction of the reservoir in Croton marked the end for significant private provision of drinking water for New Yorkers, since it displaced the Manhattan Company.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Which, as we&#8217;ve seen, happily became a bank.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Interestingly, however, it did not mark the end of water as an unpriced good, for with construction of the Croton Reservoir and the Croton Aqueduct came installation in <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> of so-called &ldquo;Croton Hydrants.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span>These fire and street hydrants provided water free of charge and proved very popular.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Echoes of the <i style="mso-bidi-font-style: normal">lacus</i>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">As a history of Croton water relates, &ldquo;Two years after it opened, Croton was primarily a <i style="mso-bidi-font-style: normal">public</i> amenity of great fountains and thousands of fire and free street hydrants; most homeowners and landlords had little inclination to install the costly service pipe.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As in Rome, we have <i style="mso-bidi-font-style: normal">legalize and tax </i>replacing the informal settlement; or, said in capital terms, the massive public investment in non-recoverable infrastructure costs (the Basic Model) created a valuable network whose incremental hookup costs were small enough that everybody wanted to join.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Formalization, meet municipal utility.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">This changed over the next 25 years as private pipes became more common, but the net result bore a fascinatingly strong resemblance to the Roman system of cross-subsidization from private pipes to <i>lacus </i>at the time of Caesar.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">8.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>The <a href="http://affordablehousinginstitute.org/blogs/us/2005/05/the_law_of_econ.html">law of economic gravity</a> applies to water<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:state w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York</span></st1:state></st1:place><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> makes a great case for studying the economics of municipal infrastructure finance because it recapitulated most of human experience in just two hundred years.<span style="mso-spacerun: yes">&nbsp; </span>As Professor Salzman says,<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-size: 8.5pt">How we think of water, whether as a sacred gift or a good for sale, both influences and is influenced by how we manage access to drinking water.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Or, as I say it &ndash; urbanization required technology and networks, which in turn require government and capital, which in turn requires large-scale public and private finance.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Urbanization is thus, among other things, a phenomenon of money.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:state w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York</span></st1:state></st1:place><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">, the epitome of capitalism, demonstrates how rapidly money power can transform environments.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><img alt="New_amsterdam" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-small1.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">That vertical line is a wall &hellip;<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Wall_street_sign" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageswall-street-sign-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">&hellip; which became synonymous with capital markets<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-outline-level: 1"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Between 1650 and 1850, <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> went through three or four different phases.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">We had the pre-urban communal use (&#8221;always ask, always give&#8221;) model:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">From its early days, <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place>&rsquo;s drinking water came from private wells, public wells, and the Collect.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When that was over-stressed &ndash; a consequence of urbanization &ndash; water vendors emerged:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Faced with declining water quality, water became commodified with the rise of Tea Water.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The limited neighborhood infrastructure was destroyed by a man-made catastrophe (war):<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Following the failure to provide public infrastructure after the Revolutionary War, the private supply of drinking water reached its logical next step with responsibility for management of <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place>&rsquo;s <i>entire </i>drinking water supply system granted to the Manhattan Company.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:state w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York</span></st1:state></st1:place><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> granted a fully private monopoly, but that failed for want of regulation and violation of the Basic Model (that government pays the non-recoverable cost):<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy">Only when the company notably failed to provide even the most basic services for drinking water or fire protection did the city step in and occupy the field.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:city w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Rome</span></st1:city><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> got to the Basic Model through imperialism; <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> got there through desperate necessity.<span style="mso-spacerun: yes">&nbsp; </span>Two diverse environments converged on the Basic Model.<span style="mso-spacerun: yes">&nbsp; </span>Is the Basic Model the Holy Grail of infrastructure finance?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Grail_arthur" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesgrail-arthur-small1.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">I have seen the Holy Grail of water infrastructure!<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Stay tuned for the summation post to come in a few days.]<o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><o:p>&nbsp;</o:p></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><o:p></o:p>&nbsp;</p>
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&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; o ns =&quot;&quot; &quot;urn:schemas-microsoft-com:office:office&quot; /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued from the previous &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html&quot;&gt;Part 1&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html&quot;&gt;Part 2&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html&quot;&gt;Part 3&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html&quot;&gt;Part 4&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html&quot;&gt;Part 5&lt;/a&gt;, and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-6-new-york-tries-private-infrastructure-finance.html&quot;&gt;Part 6&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt; &lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As we&amp;#8217;ve seen so far in this extended series on the economics of water taking off from &lt;a href=&quot;http://www.law.duke.edu/fac/salzman/&quot;&gt;Duke law professor Jim Salzman&lt;/a&gt;&amp;#8217;s article &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970&quot;&gt;Thirst: A Short History of Drinking Water&lt;/a&gt;&lt;/i&gt;, since &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html&quot;&gt;housing is what makes cities&lt;/a&gt;, infrastructure &amp;ndash; at its most basic, water and sanitation &amp;ndash; is necessary for &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html&quot;&gt;cities to scale upward&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The quintessential expanding city, &lt;?xml:namespace prefix =&quot;&quot; st1 ns =&quot;&quot; &quot;urn:schemas-microsoft-com:office:smarttags&quot; /&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt;, had to reinvent its water infrastructure repeatedly.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;5.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Infrastructure is vulnerable to man-made calamity&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As with &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;, urbanization and infrastructure spur innovations in technology.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Aqueducts could flow water only downhill, but James Watt&amp;#8217;s steam engine meant water would be pumped uphill too.&lt;/span&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;In 1774 the city approved an ambitious plan for a steam engine-powered waterworks that would pump water throughout the city in aqueducts similar to those of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Technological networks, be they paved roads, canyon-spanning aqueducts, or steam-powered pumps, take capital.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;To fund the public works, the city issued &amp;ldquo;Water Works Money,&amp;rdquo; the first paper money issued by an American city.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Finance and infrastructure go hand in hand.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Construction commenced but the timing could not have been worse.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As the colonies descended into the Revolutionary War, the British occupied the city and destroyed the waterworks construction.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;British_troops_land_new_york&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbritish-troops-land-new-york-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;I hope you&amp;#8217;re not expecting your wells to survive&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Following the Revolutionary War, water supply plans in the city stumbled along for over 15 years.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Plans were proposed for public waterworks and carefully studied, but none funded.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;6.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Growth creates crisis; crisis creates political change&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York&lt;/span&gt;&lt;/st1:state&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; kept growing, and the urban water supply (like &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;&amp;#8217;s before it) became overloaded:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Water from the Tea Water Pump was of increasingly poor quality, nor did the public wells provide an attractive option.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;By the Enlightenment, the connection between hygiene and disease had been scientifically established, which meant that epidemics also created political pressure &amp;ndash; which, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/09/political_calcu.html&quot;&gt;in this as in so many other cases&lt;/a&gt;, translated into a political commitment to spend tax money.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;A yellow fever epidemic struck &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; in 1795 and many blamed the disease on the city&amp;rsquo;s foul water and fouler streets.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Tea Water price was also a major concern.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As a letter to the &lt;i&gt;New York Gazette &lt;/i&gt;decried in 1798, &amp;ldquo;I pay for Tea Water Only About Six Pounds Per Annum; which, I think &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;a great tax for one small opinion.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/b&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Now that the taxation did imply representation, those paying the taxes were quite reasonably demanding municipal service for it.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;With citizens and business leaders demanding action, the city turned to privatization.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;In an alliance that would seem unthinkable years later, Aaron Burr joined with Alexander Hamilton and other prominent politicians of the day to drive through a &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/07/public_private.html&quot;&gt;public/private solution&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As I&amp;#8217;ve written in many contexts, government makes an excellent funder and regulator, but a less effective service provider. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;In an argument that would echo 200 years later in privatization debates, &amp;ldquo;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Hamilton&lt;/st1:city&gt;&lt;/st1:place&gt; used his considerable influence to persuade the City Council that the municipality should not build its own water works because it could not raise sufficient capital through loans and taxes.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;Chernow_hamilton&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageschernow-hamilton-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Smart enough for a very fat biography&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As the terrific recent Ron Chernow biography shows, Hamilton was an organizational and financial genius &amp;ndash; there&amp;#8217;s a reason your ten-dollar bill shows the portrait of the first Secretary of the treasury, the man who more than any other set the United States government&amp;#8217;s finances on a proper course.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Though not above making a buck on his own, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Hamilton&lt;/st1:city&gt;&lt;/st1:place&gt;&amp;#8217;s logic was very likely sound, especially given the challenges and complexity of municipal finance.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;Aaron_burr&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaaron-burr-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;If a buck can be made, why can&amp;#8217;t I be the one to make it?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Burr then hurried a bill through the state legislature in three days.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Authorized by the &lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt; state legislature and the New York City Council, the Manhattan Company, as the new organization would be called, was mandated in its corporate charter to provide &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;New York City&lt;/st1:city&gt;&lt;/st1:place&gt; with clean drinking water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;The assumption seems to have been that water would be piped in from the &lt;st1:placename w:st=&quot;on&quot;&gt;Bronx&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;River&lt;/st1:placetype&gt;, since the water sources on &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Island&lt;/st1:placetype&gt;&lt;/st1:place&gt; were now regarded as undrinkable.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;While this summary&amp;#8217;s sketchy, it suggests that &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Hamilton&lt;/st1:city&gt;&lt;/st1:place&gt; had in mind what we would now recognize as the municipal water company, a public utility. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Burr, however, was financially more ambitious.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;[Burr] directed only 10% of the Manhattan Company&amp;rsquo;s $2 million assets toward investments in water works, relying on the Collect as the water source.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;Hamilton_burr_duel&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshamilton-burr-duel-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;I guess this means we&amp;#8217;re not partners any more?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;This is more or less stealing, or to use the more polite term, &amp;#8216;conversion of public moneys to private profit,&amp;#8217; the more reprehensible since the Collect had been overused.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It&amp;#8217;s also dangerously unhealthy, as I saw when in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;Kenya&lt;/st1:country-region&gt;&lt;/st1:place&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;Kenya_siphoning_dirty_water&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageskenya-siphoning-dirty-water-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Water vendor siphoning paper plant runoff into his tanks&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;The remainder was invested more profitably in local businesses.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&amp;nbsp; &lt;/span&gt;The company did the bare minimum to maintain its charter, laying only 23 miles of pipe in its first 32 years.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Here&amp;#8217;s a classic regulatory problem: &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/05/blasting_fannie.html&quot;&gt;how do you keep a chartered private money within its remit&lt;/a&gt;?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/01/whos-next-part-1-the-gses-2007-buying.html&quot;&gt;It&amp;#8217;s problem we haven&amp;#8217;t solved yet&lt;/a&gt;, 225 years later.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Over time, this drinking water company gave up all pretence and developed into the powerful Chase Manhattan Bank.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;Chase_logo&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageschase-logo-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;It all started with a water franchise&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;From water to money, now that&amp;#8217;s liquidity!&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Although the company wasn&amp;#8217;t improving the water quality, its legal status was a valuable asset:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;While few people actually received Manhattan Company water, the company defended its monopoly power over water provision and, as the Manhattan Company&amp;rsquo;s portfolio grew, Tea Water pumps were driven out of business.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;New Yorkers were thus forced to rely on the increasingly-revolting Collect Pond and local wells.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;People with money turned to imported soda water and well water mixed with liquor.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As a historian of the era has described, &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyTextIndent&quot; style=&quot;MARGIN: 0in 0in 0pt 1in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-size: 12.0pt&quot;&gt;As for New Yorkers, drinking no more Tea Water and scant &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:city&gt;&lt;/st1:place&gt;, it was once again back to street wells and carted spring water. &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; had entered the first American century with less good water than the Dutch had bequeathed to the English.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;New_york_1842&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-1842-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;New York&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;, 1842, expanding north&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;It took a series of disasters for the government to finally address water supply head on.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;7.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Public infrastructure arrived only after full-blown privatized infrastructure failed&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Networks are vulnerable to the tragedy of the commons:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;New_york_fire&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-fire.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;We could use some public water about now&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;In 1828 a large fire caused extensive property damage and a severe cholera epidemic in 1832 killed 3,500 people in &lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt; but only 900 in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Philadelphia&lt;/st1:city&gt;&lt;/st1:place&gt;, which enjoyed reliable public water supply and streets washed down daily.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Mounting concerns over disease and inadequate water sources to fight fires forced the city&amp;rsquo;s Common Council to revisit the challenge of providing reliable supplies of clean drinking water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Following the recommendations of a state-appointed commission, a permanent Board of Water Commissioners was created and authorized [x] to raise infrastructure capital and [y] to condemn land in order to supply water to the city.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Those are significant powers, especially the latter.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;New_york_1856&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-1856-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;New York&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;, 1856, still growing, needing more water&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Not only is this &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/11/8_simple_rules.html&quot;&gt;eminent domain for economic development&lt;/a&gt;, it&amp;#8217;s acquisitive eminent domain, with the city over-reaching its boundaries.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;A hundred years hence, the &lt;st1:placetype w:st=&quot;on&quot;&gt;Commonwealth&lt;/st1:placetype&gt; of &lt;st1:placename w:st=&quot;on&quot;&gt;Massachusetts&lt;/st1:placename&gt; would &lt;a href=&quot;http://www.foquabbin.org/chronology.html&quot;&gt;dam the Swift River&lt;/a&gt; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/10/there-aint-no-such-thing-as-free-infrastructure-part-2-downstream.html&quot;&gt;to create the Quabbin Reservoir&lt;/a&gt;, in the process drowning several towns.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;House_on_truck_being_removed&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshouse-on-truck-being-removed-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;House being trucked out of the soon-to-be-flooded &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Swift&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;River&lt;/st1:placetype&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Valley&lt;/st1:placetype&gt;&lt;/st1:place&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Surprising even today, the condemnation authority extended beyond the boundaries of the city, for the water source lay upstream of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; in Croton.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;By 1838, condemnation of 35 acres of land in the Croton watershed had been completed.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The Croton Reservoir was a massive project, supplying 95 million gallons daily, yet only satisfied the city&amp;rsquo;s water needs for a decade.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;Croton_spillway&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagescroton-spillway-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Croton, still used today&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;The city then looked even farther north, to the Catskills and &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;Delaware&lt;/st1:state&gt;&lt;/st1:place&gt; watersheds.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;More echoes of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;: the city kept growing, and its network reached ever farther afield.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;New_york_reservoir_map&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-reservoir-map-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Construction of the reservoir in Croton marked the end for significant private provision of drinking water for New Yorkers, since it displaced the Manhattan Company.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Which, as we&amp;#8217;ve seen, happily became a bank.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Interestingly, however, it did not mark the end of water as an unpriced good, for with construction of the Croton Reservoir and the Croton Aqueduct came installation in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; of so-called &amp;ldquo;Croton Hydrants.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;These fire and street hydrants provided water free of charge and proved very popular.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Echoes of the &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;lacus&lt;/i&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;As a history of Croton water relates, &amp;ldquo;Two years after it opened, Croton was primarily a &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;public&lt;/i&gt; amenity of great fountains and thousands of fire and free street hydrants; most homeowners and landlords had little inclination to install the costly service pipe.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As in Rome, we have &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;legalize and tax &lt;/i&gt;replacing the informal settlement; or, said in capital terms, the massive public investment in non-recoverable infrastructure costs (the Basic Model) created a valuable network whose incremental hookup costs were small enough that everybody wanted to join.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Formalization, meet municipal utility.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;This changed over the next 25 years as private pipes became more common, but the net result bore a fascinatingly strong resemblance to the Roman system of cross-subsidization from private pipes to &lt;i&gt;lacus &lt;/i&gt;at the time of Caesar.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;8.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;The &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/05/the_law_of_econ.html&quot;&gt;law of economic gravity&lt;/a&gt; applies to water&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; makes a great case for studying the economics of municipal infrastructure finance because it recapitulated most of human experience in just two hundred years.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As Professor Salzman says,&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-size: 8.5pt&quot;&gt;How we think of water, whether as a sacred gift or a good for sale, both influences and is influenced by how we manage access to drinking water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Or, as I say it &amp;ndash; urbanization required technology and networks, which in turn require government and capital, which in turn requires large-scale public and private finance.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Urbanization is thus, among other things, a phenomenon of money.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;, the epitome of capitalism, demonstrates how rapidly money power can transform environments.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;img alt=&quot;New_amsterdam&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-small1.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;That vertical line is a wall &amp;hellip;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Wall_street_sign&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageswall-street-sign-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;&amp;hellip; which became synonymous with capital markets&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-outline-level: 1&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Between 1650 and 1850, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; went through three or four different phases.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;We had the pre-urban communal use (&amp;#8221;always ask, always give&amp;#8221;) model:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;From its early days, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt;&amp;rsquo;s drinking water came from private wells, public wells, and the Collect.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;When that was over-stressed &amp;ndash; a consequence of urbanization &amp;ndash; water vendors emerged:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Faced with declining water quality, water became commodified with the rise of Tea Water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The limited neighborhood infrastructure was destroyed by a man-made catastrophe (war):&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Following the failure to provide public infrastructure after the Revolutionary War, the private supply of drinking water reached its logical next step with responsibility for management of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt;&amp;rsquo;s &lt;i&gt;entire &lt;/i&gt;drinking water supply system granted to the Manhattan Company.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; granted a fully private monopoly, but that failed for want of regulation and violation of the Basic Model (that government pays the non-recoverable cost):&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Only when the company notably failed to provide even the most basic services for drinking water or fire protection did the city step in and occupy the field.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Rome&lt;/span&gt;&lt;/st1:city&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; got to the Basic Model through imperialism; &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; got there through desperate necessity.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Two diverse environments converged on the Basic Model.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Is the Basic Model the Holy Grail of infrastructure finance?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Grail_arthur&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesgrail-arthur-small1.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;I have seen the Holy Grail of water infrastructure!&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Stay tuned for the summation post to come in a few days.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&amp;nbsp;&lt;/p&gt;
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		<title>The economics of water: Part 6, New York tries private infrastructure finance</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-6-new-york-tries-private-infrastructure-finance.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-6-new-york-tries-private-infrastructure-finance.html#comments</comments>
		<pubDate>Thu, 17 Apr 2008 13:53:55 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cities]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Infrastructure]]></category>
		<category><![CDATA[Multipart posts]]></category>
		<category><![CDATA[New York City]]></category>
		<category><![CDATA[Urbanization]]></category>

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		<description><![CDATA[[Continued from the previous Part 1, Part 2, Part 3, Part 4, and Part 5.]
&#160;
As we&#8217;ve seen so far in this extended series on the economics of water taking off from Duke law professor Jim Salzman&#8217;s article Thirst: A Short History of Drinking Water, since housing is what makes cities, infrastructure &#8211; at its most [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued from the previous <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html">Part 1</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html">Part 2</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html">Part 3</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html">Part 4</a>, and <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html">Part 5</a>.]<?xml:namespace prefix ="" o /><o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As we&#8217;ve seen so far in this extended series on the economics of water taking off from <a href="http://www.law.duke.edu/fac/salzman/">Duke law professor Jim Salzman</a>&#8217;s article <i style="mso-bidi-font-style: normal"><a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970">Thirst: A Short History of Drinking Water</a></i>, since <a href="http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html">housing is what makes cities</a>, infrastructure &ndash; at its most basic, water and sanitation &ndash; is necessary for <a href="http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html">cities to scale upward</a>.<span style="mso-spacerun: yes">&nbsp; </span>Thus the greatest city of antiquity, <?xml:namespace prefix ="" st1 /><st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city>, was the first to create large-scale municipal infrastructure, and to do it using the Basic Model:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Basic_financing_model" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbasic-financing-model-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city> fell, no similarly urban and civilized city arose for a millennium and a half, and when it did, it spoke English.<span style="mso-spacerun: yes">&nbsp; </span>Professor Salzman&#8217;s article covers both <st1:city w:st="on">London</st1:city> and <st1:state w:st="on">New York</st1:state>, but for our purposes, <st1:state w:st="on"><st1:place w:st="on">New York</st1:place></st1:state> is the more interesting as it is a more complete and clear advance on the Roman model in its use of private capital:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">The story of <st1:state w:st="on">New York</st1:state>&rsquo;s drinking water provides an instructive contrast with <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city>.<span style="mso-spacerun: yes">&nbsp;&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Though I&#8217;m a confirmed Bostonian and birthright citizen of Red Sox nation, I&#8217;ve posted many times about New York, as it is the <a href="http://affordablehousinginstitute.org/blogs/us/2006/04/cradle_of_apart.html">cradle of apartment living</a>, the <a href="http://affordablehousinginstitute.org/blogs/us/2005/03/the_circular_fi.html">birthplace</a> of the <a href="http://affordablehousinginstitute.org/blogs/us/2006/01/living_clubs.html">co-operative</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/rent-controls-negative-assets.html">the last holdout</a> of pernicious and <a href="http://affordablehousinginstitute.org/blogs/us/2007/07/the-evolved-rent-control-landlord-part-1-the-complaint.html">metastasizing</a> <a href="http://affordablehousinginstitute.org/blogs/us/2005/04/rent_control_he.html">rent control</a>, and the inventor of <a href="http://affordablehousinginstitute.org/blogs/us/2006/03/free_as_air_par.html">air rights</a>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">1.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>From the beginning, water supply constrained <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place>&#8217;s growth<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Despite being surrounded by water on three sides, lower <st1:city w:st="on">Manhattan</st1:city> (the original <st1:place w:st="on">New Amsterdam</st1:place>) had a very finite supply of water: one pond.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Peter_minuit" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespeter-minuit-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Might make a good investment &hellip;<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Ever since Peter Minuit&rsquo;s celebrated purchase of <st1:place w:st="on"><st1:placename w:st="on">Manhattan</st1:placename> <st1:placetype w:st="on">Island</st1:placetype></st1:place> from the natives for beads and trinkets in 1626, the settlement has faced challenges of ensuring adequate drinking water.<span style="mso-spacerun: yes">&nbsp; </span>While <st1:state w:st="on"><st1:place w:st="on">New York</st1:place></st1:state> is obviously surrounded by large rivers, they open on the ocean and are too salty for drinking.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Most of the settlement&rsquo;s water came from a spring-fed, deep freshwater pond covering 70 acres in lower <st1:place w:st="on"><st1:city w:st="on">Manhattan</st1:city></st1:place>, known as the &ldquo;Kalch-Hook.&rdquo; Interestingly, much of the fresh water was used not for direct drinking but, instead, for brewing beer or cooking.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><st1:city w:st="on"><st1:place w:st="on"></st1:place></st1:city></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Purchase_of_manhattan" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespurchase-of-manhattan-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Does that include infrastructure?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Presumably (Professor Salzman doesn&#8217;t say) the communal pond was shared in the same manner as the pre-urban societies he profiled (Jewish, Islamic, African, Indian).<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Then <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> grew.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="New_amsterdam" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">You got any wells inside that Vaubin fort?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">2.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Lacking government, there was no public-policy &hellip; which proved indefensible<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy">The first Europeans to live in <st1:city w:st="on">Manhattan</st1:city>, the Dutch settlers of <st1:place w:st="on">New Amsterdam</st1:place>, relied on basic technologies to provide drinking water &ndash; collecting rainwater in cisterns and digging shallow wells.<span style="mso-spacerun: yes">&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="New_amsterdam_1660" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-1660-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The biggest Dutch city in the <st1:place w:st="on">New World</st1:place>, 1660<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">The wells in <st1:place w:st="on">New Amsterdam</st1:place> were private.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><a href="http://affordablehousinginstitute.org/blogs/us/2005/11/nno_markets_and.html">Private markets will move when government doesn&#8217;t</a>.<span style="mso-spacerun: yes">&nbsp; </span>The colony, thousands of miles from its capital and national resources, had to make do.<span style="mso-spacerun: yes">&nbsp; </span>In such a case, the greatest asset they had was their settlers&#8217; enterprise and intelligence, and they formed informal markets of their own &ndash; just like what happens in today&#8217;s slums. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Peter_stuyvesant" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespeter-stuyvesant-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Public well?<span style="mso-spacerun: yes">&nbsp; </span>What an extravagance!<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Although there were plans in 1660 to build a public well, the famed regional governor, Peter Stuyvesant, refused to approve the funding.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia"><o:p></o:p></span>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Makes one wonder what the old Dutchman would think of <a href="http://affordablehousinginstitute.org/blogs/us/2006/09/billion_dollar.html">the massive affordable housing property</a> <a href="http://affordablehousinginstitute.org/blogs/us/2006/11/bb_part_9_the_s.html">now named after him?</a><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="Stuyvesant_town" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesstuyvesant-town-small2.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">This proved remarkably short-sighted, however, for when British warships sailed up the <st1:place w:st="on"><st1:city w:st="on">Hudson</st1:city></st1:place> in 1664 the Dutch defense was brief.<span style="mso-spacerun: yes">&nbsp; </span>Besieged in a fort, the Dutch realized to their chagrin that the fort had no wells and therefore no water sources.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="New_amsterdam_1670" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-1670-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">&#8220;Sir, about those warships &hellip;&#8221;<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Following a quick surrender, which kept the town&rsquo;s commercial prospects intact, Stuyvesant justified the loss to his employers as not a particularly serious matter since the lack of fresh water on the island made it impossible to defend and easy to regain.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">No surprise, then, that one of the first acts of the new British masters, after renaming the city New Yorke, was construction of <b style="mso-bidi-font-weight: normal">public wells</b> in the city.<span style="mso-spacerun: yes">&nbsp; </span>Begun in 1667, these would remain <b style="mso-bidi-font-weight: normal">a primary source of water</b> for New Yorkers well into the 19th century.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">While this is a special case, it&#8217;s instructive that the municipal infrastructure was seen as a military resource, just as at <st1:place w:st="on">Masada</st1:place> and elsewhere.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">While regarded as public works projects, few public monies were actually spent.<span style="mso-spacerun: yes">&nbsp; </span>People living on the street where a well had been sited were told to undertake construction on their own.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Three hundred years later, we&#8217;d call that an &#8216;unfunded mandate&#8217; &ndash; and it suffered the usual fate of unfunded mandates:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="No_unfunded_mandates" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesno-unfunded-mandates-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">The plan went nowhere, though, with only one brackish well completed.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">3.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><st1:state w:st="on"><st1:place w:st="on">New York</st1:place></st1:state> reinvented the Basic Model<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">With water a strategic necessity, and the coercive mandate having failed, the New Yorkers reinvented the Basic Model:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">In 1686, construction of eight wells finally got underway through a combination of public funding and financial assessments of families who would be serviced by the well. <o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As in the modern Basic Model, the capital cost was funded by government, with <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-2-the-basic-model.html">the operating cost paid by the neighborhood using the resource</a>: <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy">Local residents were charged with ensuring proper maintenance; indeed, some of the wells later became known by the names of these overseers.</span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:state w:st="on"><st1:place w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York</span></st1:place></st1:state><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> solved the free-rider problem in a fairly direct way:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">People refusing to pay the assessment were threatened with forced sales of goods to make up the shortfall.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Basic Model proved durable, lasting a full century:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy">Long into the 18th century, most New Yorkers relied on these wells and the &ldquo;Collect&rdquo; (the anglicized pronunciation of the Kalch-hook) for free drinking water.<span style="mso-spacerun: yes">&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="New_york_bellin_map_1763" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-bellin-map-1763-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:place w:st="on"><st1:state w:st="on"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">New York</span></st1:state></st1:place><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">, 1763<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">4.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Urbanization outstripped infrastructure, leading to slums<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:state w:st="on"><st1:place w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">New York</span></st1:place></st1:state><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> kept growing, but its water supply was finite:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">During this period, however, urbanization continued and further industrial and population growth were clearly in store.<span style="mso-spacerun: yes">&nbsp; </span>Sanitation, an ever-present problem in British cities, was becoming unmanageable.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><a href="http://affordablehousinginstitute.org/blogs/us/2008/03/slums-a-municipal-definition.html">A municipal definition </a>: </span>slums are neighborhoods where housing has outrun infrastructure.<span style="mso-spacerun: yes">&nbsp; </span>And as we saw with <st1:place w:st="on"><st1:city w:st="on"><a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html">Rome (Part 5), </a></st1:city></st1:place>the solution to informality that has outgrown efforts to contain it is <i style="mso-bidi-font-style: normal">legalize and tax</i>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Peter Kalm, a Swedish botanist visiting <st1:place w:st="on"><st1:state w:st="on">New York</st1:state></st1:place> in 1748, in a remark Rodney Dangerfield would have loved, observed that the well water was so terrible horses from out of town refused to drink it.<span style="mso-spacerun: yes">&nbsp; </span>Others noted that well water had become so brackish and hard that soap would not dissolve.<span style="mso-spacerun: yes">&nbsp; </span>The Collect, once the best source of drinking water on <st1:place w:st="on"><st1:city w:st="on">Manhattan</st1:city></st1:place>, had become polluted from the tanneries and slaughterhouses on its banks.<span style="mso-spacerun: yes">&nbsp; </span>It was described by a writer of the day as a &ldquo;very sink and common sewer.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As <st1:state w:st="on"><st1:place w:st="on">New York</st1:place></st1:state> kept growing, capitalism moved, and as it always does, it started with those most able to pay:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">To those with an entrepreneurial spirit, the poor maintenance of the public wells and the increasingly disgusting state of the Collect posed not a problem but a business opportunity.<span style="mso-spacerun: yes">&nbsp; </span><b style="mso-bidi-font-weight: normal">People with means began to purchase water</b> from springs outside of town and deeper wells.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="New_york_1783" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-1783-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The water here&#8217;s much cleaner than in the big city<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Just as in <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>, a two-tiered system rapidly emerged.<span style="mso-spacerun: yes">&nbsp; </span>Municipal water was available free, and if you doubted its quality, you could buy your own pure stock.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font face="Times New Roman" size="3">Water sold from these sources became known as &ldquo;</font><a href="http://images.google.com/imgres?imgurl=http://cache.viewimages.com/xc/3258078.jpg%3Fv%3D1%26c%3DViewImages%26k%3D2%26d%3D12F00EB112845DEC2E1306ECC4EE72A2A55A1E4F32AD3138&amp;imgrefurl=http://www.viewimages.com/Search.aspx%3Fmid%3D3258078%26epmid%3D1%26partner%3DGoogle&amp;h=472&amp;w=594&amp;sz=99&amp;hl=en&amp;start=1&amp;um=1&amp;tbnid=k45N6m2aE1ihtM:&amp;tbnh=107&amp;tbnw=135&amp;prev=/images%3Fq%3DNew%2BYork%2B%2Btea%2BWater%26um%3D1%26hl%3Den%26rlz%3D1T4GGIH_enUS256US257%26sa%3DN"><font face="Times New Roman" size="3">Tea Water</font></a><font face="Times New Roman" size="3">&rdquo; and was either fetched by slaves or bought from &ldquo;Tea Water Men&rdquo; who purchased water directly from the pump owners and then carted it throughout the city for sale in buckets and barrels.<span style="mso-spacerun: yes">&nbsp; </span>By the middle of the 18th century, presaging the rise of branded bottled water two hundred years later, sale of Tea Water had become the best source of good drinking water in <st1:state w:st="on"><st1:place w:st="on">New York</st1:place></st1:state> and different pumps were favored over others.<span style="mso-spacerun: yes">&nbsp; </span>Indeed, a cottage industry developed around a </font><a href="http://books.google.com/books?id=xPylbJLgq1UC&amp;pg=PA31&amp;lpg=PA31&amp;dq=Hardenbrooks+pump&amp;source=web&amp;ots=ilZmbyjU5G&amp;sig=3-oxDY58r2NkLG-94HvHAdv-bCQ&amp;hl=en"><font face="Times New Roman" size="3">pump operated by the Hardenbrooks family</font></a><font size="3"><font face="Times New Roman">, popularly known as the &ldquo;Tea Water Pump,&rdquo; which apparently was the Perrier of its time.<span style="mso-spacerun: yes">&nbsp; </span>Not everyone could afford to purchase Tea Water, of course, and the public wells remained in use.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><u><span style="COLOR: navy"><o:p><span style="TEXT-DECORATION: none"><font face="Times New Roman" size="3"></font></span></o:p></span></u>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">The limitations of public wells and the Collect to provide clean water, growing dependence on Tea Water sales, and general concern over the availability of water to fight fires made clear the need for a serious re-thinking of New York&rsquo;s water supply.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued tomorrow in <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-7-new-york-invents-municipal-finance.html">Part 7</a>.]<o:p></o:p></span></i></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><br style="PAGE-BREAK-BEFORE: always; mso-special-character: line-break" clear="all"></span></p>
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<input type="hidden" name="postContent_0" value="&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued from the previous &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html&quot;&gt;Part 1&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html&quot;&gt;Part 2&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html&quot;&gt;Part 3&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html&quot;&gt;Part 4&lt;/a&gt;, and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html&quot;&gt;Part 5&lt;/a&gt;.]&lt;?xml:namespace prefix =&quot;&quot; o /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As we&amp;#8217;ve seen so far in this extended series on the economics of water taking off from &lt;a href=&quot;http://www.law.duke.edu/fac/salzman/&quot;&gt;Duke law professor Jim Salzman&lt;/a&gt;&amp;#8217;s article &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970&quot;&gt;Thirst: A Short History of Drinking Water&lt;/a&gt;&lt;/i&gt;, since &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html&quot;&gt;housing is what makes cities&lt;/a&gt;, infrastructure &amp;ndash; at its most basic, water and sanitation &amp;ndash; is necessary for &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html&quot;&gt;cities to scale upward&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Thus the greatest city of antiquity, &lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt;, was the first to create large-scale municipal infrastructure, and to do it using the Basic Model:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Basic_financing_model&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbasic-financing-model-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;When &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt; fell, no similarly urban and civilized city arose for a millennium and a half, and when it did, it spoke English.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Professor Salzman&amp;#8217;s article covers both &lt;st1:city w:st=&quot;on&quot;&gt;London&lt;/st1:city&gt; and &lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;, but for our purposes, &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;New York&lt;/st1:place&gt;&lt;/st1:state&gt; is the more interesting as it is a more complete and clear advance on the Roman model in its use of private capital:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The story of &lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&amp;rsquo;s drinking water provides an instructive contrast with &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Though I&amp;#8217;m a confirmed Bostonian and birthright citizen of Red Sox nation, I&amp;#8217;ve posted many times about New York, as it is the &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/04/cradle_of_apart.html&quot;&gt;cradle of apartment living&lt;/a&gt;, the &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/03/the_circular_fi.html&quot;&gt;birthplace&lt;/a&gt; of the &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/01/living_clubs.html&quot;&gt;co-operative&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/rent-controls-negative-assets.html&quot;&gt;the last holdout&lt;/a&gt; of pernicious and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/07/the-evolved-rent-control-landlord-part-1-the-complaint.html&quot;&gt;metastasizing&lt;/a&gt; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/04/rent_control_he.html&quot;&gt;rent control&lt;/a&gt;, and the inventor of &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/03/free_as_air_par.html&quot;&gt;air rights&lt;/a&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;1.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;From the beginning, water supply constrained &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt;&amp;#8217;s growth&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Despite being surrounded by water on three sides, lower &lt;st1:city w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:city&gt; (the original &lt;st1:place w:st=&quot;on&quot;&gt;New Amsterdam&lt;/st1:place&gt;) had a very finite supply of water: one pond.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Peter_minuit&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespeter-minuit-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Might make a good investment &amp;hellip;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Ever since Peter Minuit&amp;rsquo;s celebrated purchase of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:placename w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Island&lt;/st1:placetype&gt;&lt;/st1:place&gt; from the natives for beads and trinkets in 1626, the settlement has faced challenges of ensuring adequate drinking water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;While &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;New York&lt;/st1:place&gt;&lt;/st1:state&gt; is obviously surrounded by large rivers, they open on the ocean and are too salty for drinking.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Most of the settlement&amp;rsquo;s water came from a spring-fed, deep freshwater pond covering 70 acres in lower &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:city&gt;&lt;/st1:place&gt;, known as the &amp;ldquo;Kalch-Hook.&amp;rdquo; Interestingly, much of the fresh water was used not for direct drinking but, instead, for brewing beer or cooking.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Purchase_of_manhattan&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespurchase-of-manhattan-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Does that include infrastructure?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Presumably (Professor Salzman doesn&amp;#8217;t say) the communal pond was shared in the same manner as the pre-urban societies he profiled (Jewish, Islamic, African, Indian).&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Then &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; grew.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;New_amsterdam&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;You got any wells inside that Vaubin fort?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;2.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Lacking government, there was no public-policy &amp;hellip; which proved indefensible&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;The first Europeans to live in &lt;st1:city w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:city&gt;, the Dutch settlers of &lt;st1:place w:st=&quot;on&quot;&gt;New Amsterdam&lt;/st1:place&gt;, relied on basic technologies to provide drinking water &amp;ndash; collecting rainwater in cisterns and digging shallow wells.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;New_amsterdam_1660&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-1660-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The biggest Dutch city in the &lt;st1:place w:st=&quot;on&quot;&gt;New World&lt;/st1:place&gt;, 1660&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The wells in &lt;st1:place w:st=&quot;on&quot;&gt;New Amsterdam&lt;/st1:place&gt; were private.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/11/nno_markets_and.html&quot;&gt;Private markets will move when government doesn&amp;#8217;t&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The colony, thousands of miles from its capital and national resources, had to make do.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;In such a case, the greatest asset they had was their settlers&amp;#8217; enterprise and intelligence, and they formed informal markets of their own &amp;ndash; just like what happens in today&amp;#8217;s slums. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Peter_stuyvesant&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespeter-stuyvesant-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Public well?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;What an extravagance!&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Although there were plans in 1660 to build a public well, the famed regional governor, Peter Stuyvesant, refused to approve the funding.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Makes one wonder what the old Dutchman would think of &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/09/billion_dollar.html&quot;&gt;the massive affordable housing property&lt;/a&gt; &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/11/bb_part_9_the_s.html&quot;&gt;now named after him?&lt;/a&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;Stuyvesant_town&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesstuyvesant-town-small2.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;This proved remarkably short-sighted, however, for when British warships sailed up the &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Hudson&lt;/st1:city&gt;&lt;/st1:place&gt; in 1664 the Dutch defense was brief.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Besieged in a fort, the Dutch realized to their chagrin that the fort had no wells and therefore no water sources.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;New_amsterdam_1670&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-amsterdam-1670-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;&amp;#8220;Sir, about those warships &amp;hellip;&amp;#8221;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Following a quick surrender, which kept the town&amp;rsquo;s commercial prospects intact, Stuyvesant justified the loss to his employers as not a particularly serious matter since the lack of fresh water on the island made it impossible to defend and easy to regain.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;No surprise, then, that one of the first acts of the new British masters, after renaming the city New Yorke, was construction of &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;public wells&lt;/b&gt; in the city.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Begun in 1667, these would remain &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;a primary source of water&lt;/b&gt; for New Yorkers well into the 19th century.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;While this is a special case, it&amp;#8217;s instructive that the municipal infrastructure was seen as a military resource, just as at &lt;st1:place w:st=&quot;on&quot;&gt;Masada&lt;/st1:place&gt; and elsewhere.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;While regarded as public works projects, few public monies were actually spent.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;People living on the street where a well had been sited were told to undertake construction on their own.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Three hundred years later, we&amp;#8217;d call that an &amp;#8216;unfunded mandate&amp;#8217; &amp;ndash; and it suffered the usual fate of unfunded mandates:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;No_unfunded_mandates&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesno-unfunded-mandates-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The plan went nowhere, though, with only one brackish well completed.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;3.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;New York&lt;/st1:place&gt;&lt;/st1:state&gt; reinvented the Basic Model&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;With water a strategic necessity, and the coercive mandate having failed, the New Yorkers reinvented the Basic Model:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;In 1686, construction of eight wells finally got underway through a combination of public funding and financial assessments of families who would be serviced by the well. &lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As in the modern Basic Model, the capital cost was funded by government, with &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-2-the-basic-model.html&quot;&gt;the operating cost paid by the neighborhood using the resource&lt;/a&gt;: &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Local residents were charged with ensuring proper maintenance; indeed, some of the wells later became known by the names of these overseers.&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York&lt;/span&gt;&lt;/st1:place&gt;&lt;/st1:state&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; solved the free-rider problem in a fairly direct way:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;People refusing to pay the assessment were threatened with forced sales of goods to make up the shortfall.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The Basic Model proved durable, lasting a full century:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Long into the 18th century, most New Yorkers relied on these wells and the &amp;ldquo;Collect&amp;rdquo; (the anglicized pronunciation of the Kalch-hook) for free drinking water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;New_york_bellin_map_1763&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-bellin-map-1763-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;New York&lt;/span&gt;&lt;/st1:state&gt;&lt;/st1:place&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;, 1763&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;4.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Urbanization outstripped infrastructure, leading to slums&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;New York&lt;/span&gt;&lt;/st1:place&gt;&lt;/st1:state&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt; kept growing, but its water supply was finite:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;During this period, however, urbanization continued and further industrial and population growth were clearly in store.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Sanitation, an ever-present problem in British cities, was becoming unmanageable.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/slums-a-municipal-definition.html&quot;&gt;A municipal definition &lt;/a&gt;: &lt;/span&gt;slums are neighborhoods where housing has outrun infrastructure.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;And as we saw with &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html&quot;&gt;Rome (Part 5), &lt;/a&gt;&lt;/st1:city&gt;&lt;/st1:place&gt;the solution to informality that has outgrown efforts to contain it is &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;legalize and tax&lt;/i&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Peter Kalm, a Swedish botanist visiting &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:state w:st=&quot;on&quot;&gt;New York&lt;/st1:state&gt;&lt;/st1:place&gt; in 1748, in a remark Rodney Dangerfield would have loved, observed that the well water was so terrible horses from out of town refused to drink it.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Others noted that well water had become so brackish and hard that soap would not dissolve.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The Collect, once the best source of drinking water on &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Manhattan&lt;/st1:city&gt;&lt;/st1:place&gt;, had become polluted from the tanneries and slaughterhouses on its banks.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;It was described by a writer of the day as a &amp;ldquo;very sink and common sewer.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;New York&lt;/st1:place&gt;&lt;/st1:state&gt; kept growing, capitalism moved, and as it always does, it started with those most able to pay:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;To those with an entrepreneurial spirit, the poor maintenance of the public wells and the increasingly disgusting state of the Collect posed not a problem but a business opportunity.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;People with means began to purchase water&lt;/b&gt; from springs outside of town and deeper wells.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;New_york_1783&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-1783-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The water here&amp;#8217;s much cleaner than in the big city&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Just as in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;, a two-tiered system rapidly emerged.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Municipal water was available free, and if you doubted its quality, you could buy your own pure stock.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;Water sold from these sources became known as &amp;ldquo;&lt;/font&gt;&lt;a href=&quot;http://images.google.com/imgres?imgurl=http://cache.viewimages.com/xc/3258078.jpg%3Fv%3D1%26c%3DViewImages%26k%3D2%26d%3D12F00EB112845DEC2E1306ECC4EE72A2A55A1E4F32AD3138&amp;amp;imgrefurl=http://www.viewimages.com/Search.aspx%3Fmid%3D3258078%26epmid%3D1%26partner%3DGoogle&amp;amp;h=472&amp;amp;w=594&amp;amp;sz=99&amp;amp;hl=en&amp;amp;start=1&amp;amp;um=1&amp;amp;tbnid=k45N6m2aE1ihtM:&amp;amp;tbnh=107&amp;amp;tbnw=135&amp;amp;prev=/images%3Fq%3DNew%2BYork%2B%2Btea%2BWater%26um%3D1%26hl%3Den%26rlz%3D1T4GGIH_enUS256US257%26sa%3DN&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;Tea Water&lt;/font&gt;&lt;/a&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;rdquo; and was either fetched by slaves or bought from &amp;ldquo;Tea Water Men&amp;rdquo; who purchased water directly from the pump owners and then carted it throughout the city for sale in buckets and barrels.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;By the middle of the 18th century, presaging the rise of branded bottled water two hundred years later, sale of Tea Water had become the best source of good drinking water in &lt;st1:state w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;New York&lt;/st1:place&gt;&lt;/st1:state&gt; and different pumps were favored over others.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Indeed, a cottage industry developed around a &lt;/font&gt;&lt;a href=&quot;http://books.google.com/books?id=xPylbJLgq1UC&amp;amp;pg=PA31&amp;amp;lpg=PA31&amp;amp;dq=Hardenbrooks+pump&amp;amp;source=web&amp;amp;ots=ilZmbyjU5G&amp;amp;sig=3-oxDY58r2NkLG-94HvHAdv-bCQ&amp;amp;hl=en&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;pump operated by the Hardenbrooks family&lt;/font&gt;&lt;/a&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;, popularly known as the &amp;ldquo;Tea Water Pump,&amp;rdquo; which apparently was the Perrier of its time.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Not everyone could afford to purchase Tea Water, of course, and the public wells remained in use.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;u&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;span style=&quot;TEXT-DECORATION: none&quot;&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&lt;/font&gt;&lt;/span&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/u&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The limitations of public wells and the Collect to provide clean water, growing dependence on Tea Water sales, and general concern over the availability of water to fight fires made clear the need for a serious re-thinking of New York&amp;rsquo;s water supply.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued tomorrow in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-7-new-york-invents-municipal-finance.html&quot;&gt;Part 7&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA&quot;&gt;&lt;br style=&quot;PAGE-BREAK-BEFORE: always; mso-special-character: line-break&quot; clear=&quot;all&quot;&gt;&lt;/span&gt;&lt;/p&gt;
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		<title>The economics of water: Part 5, Roman municipal finance</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html#comments</comments>
		<pubDate>Fri, 11 Apr 2008 12:18:51 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cities]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Infrastructure]]></category>
		<category><![CDATA[Multipart posts]]></category>
		<category><![CDATA[Rome]]></category>
		<category><![CDATA[Urbanization]]></category>

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		<description><![CDATA[[Continued from the previous Part 1, Part 2, Part 3, and Part 4.]
&#160;
As we&#8217;ve seen so far in this extended series on the economics of water, since housing is what makes cities, for cities to scale upward, they have to bring infrastructure to their slums.&#160; The Roman emperors, who needed larger capital to administer a [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued from the previous <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html">Part 1</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html">Part 2</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html">Part 3</a>, and <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html">Part 4</a>.]<?xml:namespace prefix ="" o /><o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As we&#8217;ve seen so far in this extended series on the economics of water, since <a href="http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html">housing is what makes cities</a>, for <a href="http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html">cities to scale upward</a>, they have to bring infrastructure to their <a href="http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html">slums</a>.<span style="mso-spacerun: yes">&nbsp; </span>The Roman emperors, who needed larger capital to administer a larger empire, invested heavily in municipal infrastructure to supply <?xml:namespace prefix ="" st1 /><st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city> with water for drinking, washing, and bathing.<span style="mso-spacerun: yes">&nbsp; </span>As discussed in <a href="http://www.law.duke.edu/fac/salzman/">Duke law professor Jim Salzman</a>&#8217;s article <i style="mso-bidi-font-style: normal"><a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970">Thirst: A Short History of Drinking Water</a></i>, the shift to municipal infrastructure came when <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place> moved from a republic to an empire, which enabled the state to undertake the major capital expenditures involved. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;<font size="1"><font face="Arial"><font color="#000000"></o:p></span></p>
<p></font></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">5.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>As in the Basic Model, water infrastructure&#8217;s capital cost was non-recoverable<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The emperors paid for aqueducts out of general revenues, not user fees.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="1">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">Aqueduct construction was obviously a major public works project, funded primarily by the emperor and private donations.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><font size="1">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">This is the Basic Model of infrastructure finance.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Business_financial_model" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbusiness-financial-model-small1.jpg" border="0" /></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Thereafter, the run costs were paid by users:<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="1">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">The funds raised by the </span><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">vectigal</span></i><span style="COLOR: navy; mso-bidi-font-style: italic"> were used to cover the costs of system maintenance.<span style="mso-spacerun: yes">&nbsp; </span>The net effect of this water financing scheme gave Roman drinking water a dual nature.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The <i style="mso-bidi-font-style: normal">vectigal</i>, we saw above, was the premium or surcharge assessed to rich users who had running water in their homes.<span style="mso-spacerun: yes">&nbsp; </span><st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city> thus used a variant of the Basic Model, where shortfalls in the maintenance fees paid by ordinary customers were covered by premium fees charged to rich households. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Roman_toilet_ostia" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-toilet-ostia-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Public Roman toilet <st1:city w:st="on"><st1:place w:st="on">Ostia</st1:place></st1:city>, 40 BC<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="405_dharavi_childrens_not_used_privacy_sm_071004" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/images405-dharavi-childrens-not-used-privacy-sm-071004-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Public children&#8217;s toilet, Mumbai, 2007<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">6.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Public municipal water was subsidized<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Having spent the vast sums to create the infrastructure, the emperors were then able to offer a citizenship subsidy &ndash; free public water.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><font size="1">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">To the average Roman resident, however, drinking water in the city was available by right, as free for the taking as water from the <st1:place w:st="on">Tiber</st1:place>.<span style="mso-spacerun: yes">&nbsp; </span>Each source relied on different rationing strategies for a scarce commodity &ndash; use of </span><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">lacus</span></i><span style="COLOR: navy"> <span style="mso-bidi-font-style: italic">water was limited by the physical effort of carrying water from the basin to the home, use of water in the home was limited by the cost of paying the </span><i style="mso-bidi-font-style: normal">vectigal</i>.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></font></font></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="1">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Bludgeoning the obvious, I have to note that because water is both heavy and formless, there is a natural limit on how much one can take away for free. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">Lacus</span></i><span style="COLOR: navy"> water was, in modern parlance, a completely subsidized municipal service.<span style="mso-spacerun: yes">&nbsp; </span><span style="mso-bidi-font-style: italic">The </span><i style="mso-bidi-font-style: normal">lacus</i><span style="mso-bidi-font-style: italic"> were used by citizens for gathering water for domestic use.<span style="mso-spacerun: yes">&nbsp; </span>Importantly for our purposes, the water in the </span><i style="mso-bidi-font-style: normal">lacus</i><span style="mso-bidi-font-style: italic"> was free for the taking.<span style="mso-spacerun: yes">&nbsp; </span>Most residents of <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place> collected their water in this way and the </span><i style="mso-bidi-font-style: normal">lacus</i><span style="mso-bidi-font-style: italic"> provided communal meeting places, much as wells continue to do in many rural societies.<span style="mso-spacerun: yes">&nbsp; </span>Excavations in <st1:place w:st="on"><st1:city w:st="on">Pompeii</st1:city></st1:place> have uncovered their spacing of about 150 feet from one another throughout the city.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Pompeii_aeriel" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespompeii-aeriel-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Dense urban living, and a <i style="mso-bidi-font-style: normal">lacus</i> every 50 yards<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">7.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>As in the Basic-Plus model, premium customers got personal water<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Lacus </span></i><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">municipal water, though free, was limited <i style="mso-bidi-font-style: normal">de facto</i>, and the rich wanted better service &ndash; which they paid for.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">Not everyone chose to collect their water from public sources, however, and Roman water finances depended on this demand for private water.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">To the wealthy Roman, water in the house (whether for drinking, an ornamental fountain, or domestic uses) effectively was a priced good.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">Indeed, it is estimated that 40% of all the water delivered within <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place> went to private buildings, and not all of this was for baths.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Once the expensive trunk infrastructure had been built, the city could make a profit by running site infrastructure into individual homes. <o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">A special water tax, known as a </span><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">vectigal</span></i><span style="COLOR: navy; mso-bidi-font-style: italic">, was charged for people who had pipes running from the main system to their houses or baths.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></font></font></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Like the English window tax or the Colonial roof tax, the assessors taxed the indirect indicator of consumption, not the hard-to-measure consumption itself.<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">Because the aqueduct was free-flowing and the distribution system worked by gravity, the water was always running.<span style="mso-spacerun: yes">&nbsp; </span>Thus the tax was assessed by <b style="mso-bidi-font-weight: normal">the size of the supply pipe</b> nozzle rather than the amount consumed.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Clay_piping_ephesus" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesclay-piping-ephesus-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">You see a drain, I see a tax<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">With the premium for service came a better quality product:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">Almost half of the Marcia aqueduct&rsquo;s water, prized for its drinking quality, went to private uses and roughly a quarter went to the city&rsquo;s public basins, known as </span><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">lacus</span></i><span style="COLOR: navy; mso-bidi-font-style: italic">.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">You may laugh at the Romans distinguishing their water by quality, but how many of us drink bottled water even though what comes out of the tap is both virtually free and virtually pure?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="Bottled_water" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbottled-water-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">How much more is it worth?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">8.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>The Romans had a &#8216;free-rider&#8217; problem as well<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Any group-benefit asset is vulnerable to what economists have named <a href="http://en.wikipedia.org/wiki/Free_rider_problem">the free-rider problem</a> &ndash; that some people gain the benefit without paying for it.<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">Piped delivery of water to a private residence was a status symbol, and a common luxury of senators.<span style="mso-spacerun: yes">&nbsp; </span>It was clearly of considerable value, as well, because a major black market arose in what Frontinus called &ldquo;puncturing&rdquo; &ndash; attaching secret pipes to main lines in order to draw water illicitly into private residences.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><a href="http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-1-the-challenge-of-group-benefit-lending.html">When I was in Ahemdabad</a> looking at <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-2-the-basic-model.html">Mahila Housing&#8217;s small-scale neighborhood street improvements</a>, among the benefits they cited was precisely this same phenomenon &ndash; households running illegal pipes or electrical wires alongside the legal ones.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Strangler_fig" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesstrangler-fig-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">You don&#8217;t mind me borrowing your infrastructure, do you, trunk?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Once the infrastructure is built, the marginal cost to add another consumer (legal or illegal) is quite small, so piggybacking on other people&#8217;s infrastructure is perfectly sensible, especially when the penalty for doing so is likely to be not much worse than one&#8217;s current situation &ndash; one of the many reasons <a href="http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html">why slums are economically rational</a>.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Kibera_wiring" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageskibera-wiring-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Home-grown wiring in Kibera, <st1:place w:st="on"><st1:city w:st="on">Nairobi</st1:city>, <st1:country-region w:st="on">Kenya</st1:country-region></st1:place><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Indeed, <a href="http://affordablehousinginstitute.org/blogs/us/2008/01/profile-of-a-slum-dharavi-part-1.html">those who live in a slum</a> may come to see it as their collective social fiddle against the rich formal outside world, making the resulting utility theft rampant.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">This became such a problem that a section of the Roman law code was dedicated specifically to this type of offense, made punishable by a 100,000 sesterces fine.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: yellow; FONT-FAMILY: Arial; mso-highlight: yellow"><o:p></o:p></span>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The ultimate solution is <i style="mso-bidi-font-style: normal">legalize and tax</i>.<span style="mso-spacerun: yes">&nbsp; </span>In other words, when an informal settlement or <a href="http://affordablehousinginstitute.org/blogs/us/2005/10/spontaneous_com.html">spontaneous community</a> has become sufficiently integrated into the larger city that it&#8217;s leeching away free utilities, then the locality which may have ignored it up to now must bring it into the formal community, in economic self-defense.<span style="mso-spacerun: yes">&nbsp; </span>If I&#8217;m right about this, slums turn into normal communities through a process of <i style="mso-bidi-font-style: normal">post hoc </i>formalization when their scale, longevity, and civility have collectively legitimized them politically.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">This may be <a href="http://affordablehousinginstitute.org/blogs/us/2006/05/desotos_dryer_p_2.html">the missing link</a> in <a href="http://affordablehousinginstitute.org/blogs/us/2006/05/desotos_dryer_p_3.html">De Soto&#8217;s theories of formalizing property</a>. <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It&#8217;s a big concept &ndash; beyond the scope of this extended essay.<span style="mso-spacerun: yes">&nbsp; </span>We&#8217;ll save it for another day.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">9.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Water was seen as a service of the state to its citizens<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Whether ego-based (plaudits), self-interest-based (workforce housing), or otherwise, once the emperors had got into the habit of building aqueducts, basins, and fountains with other people&#8217;s money (the tax-based revenues), they found they quite liked it:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">These beautiful fountains and basins provided water and a clear justification of regime change.<span style="mso-spacerun: yes">&nbsp; </span>The Romans&rsquo; right to water was acknowledged, ensured, and enhanced in the name of Caesar.<span style="mso-spacerun: yes">&nbsp;<font size="1"> </font></span><o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="1">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><st1:city w:st="on"><st1:place w:st="on"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Rome</span></st1:place></st1:city><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">&#8217;s creation of a municipal water-delivery network is important as the first recorded example of two innovations:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<ol style="MARGIN-TOP: 0in" type="1">
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Utility infrastructure at a metropolitan rather than household scale.<o:p></o:p></span></li>
<li class="MsoNormal" style="MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A basic-plus financial and operating model to sustain and improve service over time.</span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></li>
</ol>
<p class="MsoBodyTextIndent" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">The Roman story, then, provides within the same city fundamentally different visions of drinking water &ndash; as a public good provided by right through imperial beneficence, on the one hand, and as a private good for domestic consumption, on the other.<span style="mso-spacerun: yes">&nbsp; </span>Yet the two depended upon one another, for it was the treatment of drinking water as a priced good that enabled cross-subsidization to ensure its public nature.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As with many Roman innovations, these principles would be forgotten in the feudal times, but they&#8217;ll recur during the Enlightenment.<span style="mso-spacerun: yes">&nbsp; </span>When they come back, they&#8217;ll be back to stay.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="New_york_fire" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-fire-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">You&#8217;re going to need some clean water soon<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued tomorrow in <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-6-new-york-tries-private-infrastructure-finance.html">Part 6</a>.]<o:p></o:p></span></i></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><br style="PAGE-BREAK-BEFORE: always; mso-special-character: line-break" clear="all"></span></p>
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<input type="hidden" name="postContent_0" value="&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued from the previous &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html&quot;&gt;Part 1&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html&quot;&gt;Part 2&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html&quot;&gt;Part 3&lt;/a&gt;, and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html&quot;&gt;Part 4&lt;/a&gt;.]&lt;?xml:namespace prefix =&quot;&quot; o /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As we&amp;#8217;ve seen so far in this extended series on the economics of water, since &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html&quot;&gt;housing is what makes cities&lt;/a&gt;, for &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html&quot;&gt;cities to scale upward&lt;/a&gt;, they have to bring infrastructure to their &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html&quot;&gt;slums&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The Roman emperors, who needed larger capital to administer a larger empire, invested heavily in municipal infrastructure to supply &lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt; with water for drinking, washing, and bathing.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As discussed in &lt;a href=&quot;http://www.law.duke.edu/fac/salzman/&quot;&gt;Duke law professor Jim Salzman&lt;/a&gt;&amp;#8217;s article &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970&quot;&gt;Thirst: A Short History of Drinking Water&lt;/a&gt;&lt;/i&gt;, the shift to municipal infrastructure came when &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt; moved from a republic to an empire, which enabled the state to undertake the major capital expenditures involved. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;font size=&quot;1&quot;&gt;&lt;font face=&quot;Arial&quot;&gt;&lt;font color=&quot;#000000&quot;&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;5.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;As in the Basic Model, water infrastructure&amp;#8217;s capital cost was non-recoverable&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The emperors paid for aqueducts out of general revenues, not user fees.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;1&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Aqueduct construction was obviously a major public works project, funded primarily by the emperor and private donations.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;font size=&quot;1&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;This is the Basic Model of infrastructure finance.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Business_financial_model&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbusiness-financial-model-small1.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Thereafter, the run costs were paid by users:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;1&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;The funds raised by the &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;vectigal&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt; were used to cover the costs of system maintenance.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The net effect of this water financing scheme gave Roman drinking water a dual nature.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;vectigal&lt;/i&gt;, we saw above, was the premium or surcharge assessed to rich users who had running water in their homes.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt; thus used a variant of the Basic Model, where shortfalls in the maintenance fees paid by ordinary customers were covered by premium fees charged to rich households. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Roman_toilet_ostia&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-toilet-ostia-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Public Roman toilet &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Ostia&lt;/st1:place&gt;&lt;/st1:city&gt;, 40 BC&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;405_dharavi_childrens_not_used_privacy_sm_071004&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/images405-dharavi-childrens-not-used-privacy-sm-071004-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Public children&amp;#8217;s toilet, Mumbai, 2007&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;6.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Public municipal water was subsidized&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Having spent the vast sums to create the infrastructure, the emperors were then able to offer a citizenship subsidy &amp;ndash; free public water.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;font size=&quot;1&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;To the average Roman resident, however, drinking water in the city was available by right, as free for the taking as water from the &lt;st1:place w:st=&quot;on&quot;&gt;Tiber&lt;/st1:place&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Each source relied on different rationing strategies for a scarce commodity &amp;ndash; use of &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;lacus&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy&quot;&gt; &lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt;water was limited by the physical effort of carrying water from the basin to the home, use of water in the home was limited by the cost of paying the &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;vectigal&lt;/i&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;1&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Bludgeoning the obvious, I have to note that because water is both heavy and formless, there is a natural limit on how much one can take away for free. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Lacus&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy&quot;&gt; water was, in modern parlance, a completely subsidized municipal service.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt;The &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;lacus&lt;/i&gt;&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt; were used by citizens for gathering water for domestic use.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Importantly for our purposes, the water in the &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;lacus&lt;/i&gt;&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt; was free for the taking.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Most residents of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt; collected their water in this way and the &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;lacus&lt;/i&gt;&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt; provided communal meeting places, much as wells continue to do in many rural societies.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Excavations in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Pompeii&lt;/st1:city&gt;&lt;/st1:place&gt; have uncovered their spacing of about 150 feet from one another throughout the city.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Pompeii_aeriel&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespompeii-aeriel-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Dense urban living, and a &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;lacus&lt;/i&gt; every 50 yards&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;7.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;As in the Basic-Plus model, premium customers got personal water&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Lacus &lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;municipal water, though free, was limited &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;de facto&lt;/i&gt;, and the rich wanted better service &amp;ndash; which they paid for.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Not everyone chose to collect their water from public sources, however, and Roman water finances depended on this demand for private water.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;To the wealthy Roman, water in the house (whether for drinking, an ornamental fountain, or domestic uses) effectively was a priced good.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Indeed, it is estimated that 40% of all the water delivered within &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt; went to private buildings, and not all of this was for baths.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Once the expensive trunk infrastructure had been built, the city could make a profit by running site infrastructure into individual homes. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;A special water tax, known as a &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;vectigal&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;, was charged for people who had pipes running from the main system to their houses or baths.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Like the English window tax or the Colonial roof tax, the assessors taxed the indirect indicator of consumption, not the hard-to-measure consumption itself.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Because the aqueduct was free-flowing and the distribution system worked by gravity, the water was always running.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Thus the tax was assessed by &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;the size of the supply pipe&lt;/b&gt; nozzle rather than the amount consumed.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Clay_piping_ephesus&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesclay-piping-ephesus-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;You see a drain, I see a tax&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;With the premium for service came a better quality product:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;Almost half of the Marcia aqueduct&amp;rsquo;s water, prized for its drinking quality, went to private uses and roughly a quarter went to the city&amp;rsquo;s public basins, known as &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;lacus&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;You may laugh at the Romans distinguishing their water by quality, but how many of us drink bottled water even though what comes out of the tap is both virtually free and virtually pure?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;Bottled_water&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbottled-water-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;How much more is it worth?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;8.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;The Romans had a &amp;#8216;free-rider&amp;#8217; problem as well&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Any group-benefit asset is vulnerable to what economists have named &lt;a href=&quot;http://en.wikipedia.org/wiki/Free_rider_problem&quot;&gt;the free-rider problem&lt;/a&gt; &amp;ndash; that some people gain the benefit without paying for it.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Piped delivery of water to a private residence was a status symbol, and a common luxury of senators.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;It was clearly of considerable value, as well, because a major black market arose in what Frontinus called &amp;ldquo;puncturing&amp;rdquo; &amp;ndash; attaching secret pipes to main lines in order to draw water illicitly into private residences.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-1-the-challenge-of-group-benefit-lending.html&quot;&gt;When I was in Ahemdabad&lt;/a&gt; looking at &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-2-the-basic-model.html&quot;&gt;Mahila Housing&amp;#8217;s small-scale neighborhood street improvements&lt;/a&gt;, among the benefits they cited was precisely this same phenomenon &amp;ndash; households running illegal pipes or electrical wires alongside the legal ones.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Strangler_fig&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesstrangler-fig-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;You don&amp;#8217;t mind me borrowing your infrastructure, do you, trunk?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Once the infrastructure is built, the marginal cost to add another consumer (legal or illegal) is quite small, so piggybacking on other people&amp;#8217;s infrastructure is perfectly sensible, especially when the penalty for doing so is likely to be not much worse than one&amp;#8217;s current situation &amp;ndash; one of the many reasons &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html&quot;&gt;why slums are economically rational&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Kibera_wiring&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageskibera-wiring-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Home-grown wiring in Kibera, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Nairobi&lt;/st1:city&gt;, &lt;st1:country-region w:st=&quot;on&quot;&gt;Kenya&lt;/st1:country-region&gt;&lt;/st1:place&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Indeed, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/01/profile-of-a-slum-dharavi-part-1.html&quot;&gt;those who live in a slum&lt;/a&gt; may come to see it as their collective social fiddle against the rich formal outside world, making the resulting utility theft rampant.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;This became such a problem that a section of the Roman law code was dedicated specifically to this type of offense, made punishable by a 100,000 sesterces fine.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: yellow; FONT-FAMILY: Arial; mso-highlight: yellow&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The ultimate solution is &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;legalize and tax&lt;/i&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;In other words, when an informal settlement or &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/10/spontaneous_com.html&quot;&gt;spontaneous community&lt;/a&gt; has become sufficiently integrated into the larger city that it&amp;#8217;s leeching away free utilities, then the locality which may have ignored it up to now must bring it into the formal community, in economic self-defense.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;If I&amp;#8217;m right about this, slums turn into normal communities through a process of &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;post hoc &lt;/i&gt;formalization when their scale, longevity, and civility have collectively legitimized them politically.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;This may be &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/05/desotos_dryer_p_2.html&quot;&gt;the missing link&lt;/a&gt; in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/05/desotos_dryer_p_3.html&quot;&gt;De Soto&amp;#8217;s theories of formalizing property&lt;/a&gt;. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It&amp;#8217;s a big concept &amp;ndash; beyond the scope of this extended essay.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;We&amp;#8217;ll save it for another day.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;9.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Water was seen as a service of the state to its citizens&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Whether ego-based (plaudits), self-interest-based (workforce housing), or otherwise, once the emperors had got into the habit of building aqueducts, basins, and fountains with other people&amp;#8217;s money (the tax-based revenues), they found they quite liked it:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;These beautiful fountains and basins provided water and a clear justification of regime change.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The Romans&amp;rsquo; right to water was acknowledged, ensured, and enhanced in the name of Caesar.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&lt;font size=&quot;1&quot;&gt; &lt;/font&gt;&lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;1&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Rome&lt;/span&gt;&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&amp;#8217;s creation of a municipal water-delivery network is important as the first recorded example of two innovations:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;ol style=&quot;MARGIN-TOP: 0in&quot; type=&quot;1&quot;&gt;
&lt;li class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Utility infrastructure at a metropolitan rather than household scale.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/li&gt;
&lt;li class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: list .5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;A basic-plus financial and operating model to sustain and improve service over time.&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/li&gt;
&lt;/ol&gt;
&lt;p class=&quot;MsoBodyTextIndent&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The Roman story, then, provides within the same city fundamentally different visions of drinking water &amp;ndash; as a public good provided by right through imperial beneficence, on the one hand, and as a private good for domestic consumption, on the other.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Yet the two depended upon one another, for it was the treatment of drinking water as a priced good that enabled cross-subsidization to ensure its public nature.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;As with many Roman innovations, these principles would be forgotten in the feudal times, but they&amp;#8217;ll recur during the Enlightenment.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;When they come back, they&amp;#8217;ll be back to stay.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;New_york_fire&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesnew-york-fire-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;You&amp;#8217;re going to need some clean water soon&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued tomorrow in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-6-new-york-tries-private-infrastructure-finance.html&quot;&gt;Part 6&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA&quot;&gt;&lt;br style=&quot;PAGE-BREAK-BEFORE: always; mso-special-character: line-break&quot; clear=&quot;all&quot;&gt;&lt;/span&gt;&lt;/p&gt;
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		<title>The economics of water: Part 4, Rome invents the municipality</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html#comments</comments>
		<pubDate>Thu, 10 Apr 2008 14:01:55 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cities]]></category>
		<category><![CDATA[History]]></category>
		<category><![CDATA[Infrastructure]]></category>
		<category><![CDATA[Multipart posts]]></category>
		<category><![CDATA[Rome]]></category>
		<category><![CDATA[Urbanization]]></category>

		<guid isPermaLink="false">http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html</guid>
		<description><![CDATA[ 
[Continued from the previous Part 1, Part 2, and Part 3.]
&#160;
In&#160;Part 1&#160;on the economics of water, I claimed that because housing is what makes cities, piping and water management was a precondition of forming cities, and is a controlling variable on successful urbanization in the global south, where the world&#8217;s rapidly expanding cities are [...]]]></description>
			<content:encoded><![CDATA[<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><?xml:namespace prefix ="" o /><o:p> </p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued from the previous <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html">Part 1</a>, <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html">Part 2</a>, and <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html">Part 3</a>.]<o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In&nbsp;<a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html">Part 1</a>&nbsp;on the economics of water, I claimed that because <a href="http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html">housing is what makes cities</a>, piping and water management was a precondition of forming cities, and is a controlling variable on successful urbanization in the global south, where the world&#8217;s rapidly expanding cities are creating <a href="http://affordablehousinginstitute.org/blogs/us/2005/10/spontaneous_com.html">spontaneous communities</a> that represent their <a href="http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html">slums</a>.<span style="mso-spacerun: yes">&nbsp; </span>I&#8217;m interested because clean water and sanitation materially influences <a href="http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html">city scaling</a>, and because the world&#8217;s poor areas are facing challenges that have recurred throughout history, as shown in <a href="http://www.law.duke.edu/fac/salzman/">Duke law professor Jim Salzman</a>&#8217;s article <i style="mso-bidi-font-style: normal"><a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970">Thirst: A Short History of Drinking Water</a></i>, <o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><?xml:namespace prefix ="" st1 /><st1:place w:st="on"><st1:city w:st="on"><span style="COLOR: navy; mso-bidi-font-style: italic">Rome</span></st1:city></st1:place><span style="COLOR: navy; mso-bidi-font-style: italic"> is the first great city defined by its management of drinking water.<span style="mso-spacerun: yes">&nbsp; </span>Irrigation reached new heights in the <st1:placename w:st="on">Hanging</st1:placename> <st1:placetype w:st="on">Gardens</st1:placetype> of <st1:place w:st="on"><st1:city w:st="on">Babylon</st1:city></st1:place>, <o:p></o:p></span></font></font></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><st1:city w:st="on"><st1:place w:st="on"><font color="#000000"></st1:place></st1:city></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Hanging_gardens_babylon" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshanging-gardens-babylon-small1.jpg" border="0" /><br /></o:p></span></font><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">You may think this an exaggeration &hellip;<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Hanging_gardens_ruins" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshanging-gardens-ruins-small.jpg" border="0" /></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">But take a look at the ruins<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">and while the cisterns and storage basins of Mesapotamian cultures were impressive feats of engineering, they cannot compare with the graceful aqueducts that carried clean water to the great Roman cities.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia"><o:p></o:p></span>&nbsp;</p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Pont_du_gard_aqueduct" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespont-du-gard-aqueduct-small.jpg" border="0" /></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The great aqueduct at the Pont du Gard<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">Aqueducts were among the most magnificent structures of the ancient world and some proudly survive today.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia"><o:p></o:p></span>&nbsp;</p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Pont_du_gard_2" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespont-du-gard-2-small.jpg" border="0" /></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Still standing, and you can walk atop it<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">The water fountains that continue to define the splendor of <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city> were important parts of the city&rsquo;s drinking water provision over 2,000 years ago.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia"><o:p></o:p></span>&nbsp;</p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Roman_fountain_faucet" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-fountain-faucet-small.jpg" border="0" /></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The faucet&#8217;s new &hellip;<o:p></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><st1:city w:st="on"><st1:place w:st="on"><span style="COLOR: navy; mso-bidi-font-style: italic">Rome</span></st1:place></st1:city><span style="COLOR: navy; mso-bidi-font-style: italic"> is also the first major city we know of that managed drinking water as a priced resource. <o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The more I investigate the cities, the more I find all roads lead to <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city>.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><br /><img alt="Roman_road_in_britain" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-road-in-britain-small.jpg" border="0" /></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Even from far Britannia, the road leads to <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">I&#8217;ve previously posted about <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city> as <a href="http://affordablehousinginstitute.org/blogs/us/2006/03/the_earliest_ap.html">the inventors of apartments (<i style="mso-bidi-font-style: normal">insulae</i>),</a> and of <a href="http://affordablehousinginstitute.org/blogs/us/2008/02/worlds-first-homeownership-subsidy.html">the world&#8217;s first homeownership subsidy</a>.<span style="mso-spacerun: yes">&nbsp; </span>The Romans appear to be the first culture that seriously thought about civic infrastructure, from their roads to their forums.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Roman_road_cross_section" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-road-cross-section-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">We find the same attention to long-term viability inherent in the Roman approach to water, where the world&#8217;s largest city was sustained on the world&#8217;s first municipal water supply that mixed a free public good subsidized by the state, and the world&#8217;s first private pricing market in water.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">1.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>The city&#8217;s growth was constrained by water<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The pre-urban <st1:city w:st="on"><st1:place w:st="on">Rome</st1:place></st1:city> was founded among the seven hills because water was plentiful:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Because of <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>&rsquo;s high water table, there was plentiful water available from local wells and springs.<span style="mso-spacerun: yes">&nbsp; </span>The great water engineer of <st1:city w:st="on">Rome</st1:city>, Frontinus, makes this clear at the very beginning of his treatise of water management, <i>De Aquis Urbis Romae, </i>when he states that &ldquo;the Romans were satisfied with such waters as they drew from the <st1:place w:st="on">Tiber</st1:place>, from wells, or from springs. Esteem for Springs still continues.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Urbanization increased population density, and that led to a tougher problem: not getting the water in, but getting the effluvia out:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Outflow" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesoutflow-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">It&#8217;s not quite so clean coming out<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Over time, however, as the city&rsquo;s population grew the water of the <st1:place w:st="on">Tiber</st1:place> became increasingly polluted, particularly because the city&rsquo;s main sewer, the <i>Cloaca Maxima,</i> flowed directly into it.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><br />Just by itself, the Cloaca Maxima is an impressive feat of organization and engineering.<br style="mso-special-character: line-break"><br style="mso-special-character: line-break"><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Cloaca_maxima" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagescloaca-maxima-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The Cloaca Maxima<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The good news is it&#8217;s well built<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The bad news it flows into the water supply<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">2.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Water requirements rose faster than population, as urbanization increased demand<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">When we think of Roman water, we think of aqueducts, those repeated demonstrations of the load-bearing capacity of arches.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Sevilla_aqueduct_raiilroad" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagessevilla-aqueduct-raiilroad-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">So strong they could bear the load of a train or auto traffic<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">While aqueducts play a critical part in the story of Roman drinking water, that was not their original purpose.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy">The main reason for construction of the aqueducts was not hygienic but social.<span style="mso-spacerun: yes">&nbsp; </span><st1:place w:st="on"><st1:city w:st="on">Bath</st1:city></st1:place> houses were an integral part of Roman society and they required large volumes of water.<span style="mso-spacerun: yes">&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In other words, as the Romans became both richer and more urban, they demanded better hygiene, and a form of social relaxation.<span style="mso-spacerun: yes">&nbsp; </span><st1:place w:st="on"><st1:city w:st="on">Bath</st1:city></st1:place> houses are a civic feature, something necessary only in a city, where fresh water for bathing is unavailable because it has been built over.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Roman_bath_layout" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-bath-layout-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">A whole fitness center and social club<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Increased supply did not sate the Romans; instead it led to increased demand.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">The ready availability of a reliable source of clean water from the aqueducts spurred demands for its water to be used for drinking, fountains, gardens, and even public toilets.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">3.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Water demand spurred technological innovation<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In&nbsp;<a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html">Part 1</a>&nbsp;I observed that management of water presupposes (x) technology, and (y) legal and societal constructs.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Moving water involves technological constructs.<span style="mso-spacerun: yes">&nbsp; </span>Storing water requires large physical constructs.<span style="mso-spacerun: yes">&nbsp; </span>Protecting water requires legal and social constructs.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Put that all together and it means cities cannot survive, much less expand, without state-of-the-art large-scale infrastructure &ndash; like aqueducts:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><st1:place w:st="on"><st1:city w:st="on"><span style="COLOR: navy">Rome</span></st1:city></st1:place><span style="COLOR: navy">&rsquo;s first aqueduct, the <i>Appia</i>, was built in 312 BC.<span style="mso-spacerun: yes">&nbsp;&nbsp; </span><o:p></o:p></span></font></font></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Aqua_appia" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqua-appia-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Remains of the Aqua Appia<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">In all, eleven aqueducts were constructed over approximately 550 years.<span style="mso-spacerun: yes">&nbsp; </span>The <i>Marcia</i> was the third aqueduct, built in 144 BC, and much larger than its predecessors.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p style="MARGIN: 0in 0in 0pt"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Aqua_marcia" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqua-marcia-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">A segment of the Aqua Marcia<o:p></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Brought into the city at a great height, the <i>Marcia&rsquo;s </i>waters were distributed throughout the city by gravity and its sweet waters were primarily used for drinking water.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Aqua_marcia_map" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqua-marcia-map-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">A single aqueduct running 56 miles<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">Aqueduct water was piped into large catch basins and then into storage reservoirs known as </span><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">castella</span></i><span style="COLOR: navy">.<span style="mso-bidi-font-style: italic"> From these, three piping systems branched out, each dedicated to a different use.<span style="mso-spacerun: yes">&nbsp; </span>One set of pipes was used for the city&rsquo;s basins and fountains (</span><i style="mso-bidi-font-style: normal">usus publici</i><span style="mso-bidi-font-style: italic">); the second set was dedicated to private uses (</span><i style="mso-bidi-font-style: normal">privati</i><span style="mso-bidi-font-style: italic">); and the last set to bath houses (</span><i style="mso-bidi-font-style: normal">balneae</i><span style="mso-bidi-font-style: italic">).<span style="mso-spacerun: yes">&nbsp; </span>A priority system ensured that public needs were served first, then private uses, than baths.<span style="mso-spacerun: yes">&nbsp;&nbsp; </span><o:p></o:p></span></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It&#8217;s evident that the technological innovation also required civic organization.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">4.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Water management was a municipal activity<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Infrastructure of the physical and economic scale represented by fifty-mile long aqueducts could not be undertaken, at least in those times, by private oligarchs or plutocrats.<span style="mso-spacerun: yes">&nbsp; </span>That much raw material, labor, organization, and money, was the purview of the state.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">In the time of Emperor Augustus, the number of </span><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">lacus</span></i><span style="COLOR: navy"> <span style="mso-bidi-font-style: italic">increased dramatically, from 91 to almost 600.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">It&#8217;s significant, I think, that the major building was done promptly after <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place> had become an empire, not a republic.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><font size="3"><font face="Times New Roman">As Malott has written, following the overthrow of the Republic,<o:p></o:p></font></font></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 1in"><span style="FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-style: italic; mso-bidi-font-size: 12.0pt"><font face="Times New Roman">The early emperors combated this dwindling sense of civic duty by using the aqueducts&rsquo; propagandistic power to replace self-interest in the state with dependence on the state, which proved to be much more effective in the end.<o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Maybe.<span style="mso-spacerun: yes">&nbsp; </span>Or maybe cost at the scale to build aqueducts is difficult to ram a fractious assembly.<span style="mso-spacerun: yes">&nbsp; </span>Throughout history, massive building has signaled the will of a single leader, be he military or otherwise (think Robert Moses).<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Robert_moses_arnold_newman" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesrobert-moses-arnold-newman-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">How dare you say I&#8217;m imperial!<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">And many of these were magnificently decorated with 300 bronze and marble statues and 400 marble columns.<span style="mso-spacerun: yes">&nbsp; </span>These ornate water masterpieces strengthened the tradition of majestic fountains we still associate with <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>.<span style="mso-spacerun: yes">&nbsp; </span>But why were they built?<span style="mso-spacerun: yes">&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Lacus_curtius2" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageslacus-curtius2-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Ruins of the <i style="mso-bidi-font-style: normal">lacus curtius</i>, in the Roman Forum<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-style: italic">Classical scholars suggest these impressive public works were intended, first and foremost, as political statements, to remind the common people that they received their water from imperial beneficence in the name of the Emperor, </span><i style="mso-bidi-font-style: normal"><span style="COLOR: navy">Aqua Nomine Caesaris</span></i><span style="COLOR: navy; mso-bidi-font-style: italic">.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></font></font></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy; mso-bidi-font-style: italic"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">To me, that seems too abstract.<span style="mso-spacerun: yes">&nbsp; </span>The Roman citizen had no need of fountains to know of the emperor&#8217;s importance.<span style="mso-spacerun: yes">&nbsp; </span>I like two other explanations: (a) imperial ego expressing itself as visible largesse, and (b) the awareness of <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>&#8217;s <a href="http://affordablehousinginstitute.org/blogs/us/2007/02/increasing_work.html">need for workforce housing</a>.<span style="mso-spacerun: yes">&nbsp; </span><a href="http://affordablehousinginstitute.org/blogs/us/2008/02/worlds-first-homeownership-subsidy.html">We saw the same thing in Constantinople</a>, where the emperor introduced the <i style="mso-bidi-font-style: normal">panes aedium</i>, a bread subsidy tied directly to new construction homeownership.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A great empire needs a great capital, and a great administration needs a great workforce.<span style="mso-spacerun: yes">&nbsp; </span>Binding them to the emperor through subsidy tied to tenure or home.<span style="mso-spacerun: yes">&nbsp; </span>Again Professor Salzman quotes Malott:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoBodyText" style="MARGIN: 0in 0in 0pt 1in"><span style="FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-style: italic; mso-bidi-font-size: 12.0pt"><font face="Times New Roman">[It is hard to] believe that the addition of 500 public fountains was truly a necessity [for drinking water supply], especially since wells and springs were apparently still frequently used.<span style="mso-spacerun: yes">&nbsp; </span>However, by totally revamping the water system and making it more conspicuous and lavishly decorated, Augustus, and then Claudius after him, wanted to make the people forget that the older aqueducts survived from a time when the Emperor had no power. He wanted to erase the history of the aqueducts before him and suggest that they were his personal possession, and that although they were a free public service, the people still received their water by his generosity and permission.<o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Emperor_claudius" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesemperor-claudius-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">How stupid can I be?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><img alt="Rome-claudius" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesrome-2dclaudius-small.jpg" border="0" /></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">If I rule an empire this large?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued tomorrow in <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html">Part 5</a>.]<o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><br style="PAGE-BREAK-BEFORE: always; mso-special-character: line-break" clear="all"></span></o:p></span></p>
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<input type="hidden" name="postContent_0" value="&lt;p&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; o /&gt;&lt;o:p&gt; &lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued from the previous &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html&quot;&gt;Part 1&lt;/a&gt;, &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html&quot;&gt;Part 2&lt;/a&gt;, and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html&quot;&gt;Part 3&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In&amp;nbsp;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html&quot;&gt;Part 1&lt;/a&gt;&amp;nbsp;on the economics of water, I claimed that because &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/12/housing-is-the-linchpin-of-cities.html&quot;&gt;housing is what makes cities&lt;/a&gt;, piping and water management was a precondition of forming cities, and is a controlling variable on successful urbanization in the global south, where the world&amp;#8217;s rapidly expanding cities are creating &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/10/spontaneous_com.html&quot;&gt;spontaneous communities&lt;/a&gt; that represent their &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html&quot;&gt;slums&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I&amp;#8217;m interested because clean water and sanitation materially influences &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/08/cities-and-scale-part-3-the-implications.html&quot;&gt;city scaling&lt;/a&gt;, and because the world&amp;#8217;s poor areas are facing challenges that have recurred throughout history, as shown in &lt;a href=&quot;http://www.law.duke.edu/fac/salzman/&quot;&gt;Duke law professor Jim Salzman&lt;/a&gt;&amp;#8217;s article &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970&quot;&gt;Thirst: A Short History of Drinking Water&lt;/a&gt;&lt;/i&gt;, &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;Rome&lt;/span&gt;&lt;/st1:city&gt;&lt;/st1:place&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt; is the first great city defined by its management of drinking water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Irrigation reached new heights in the &lt;st1:placename w:st=&quot;on&quot;&gt;Hanging&lt;/st1:placename&gt; &lt;st1:placetype w:st=&quot;on&quot;&gt;Gardens&lt;/st1:placetype&gt; of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Babylon&lt;/st1:city&gt;&lt;/st1:place&gt;, &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;font color=&quot;#000000&quot;&gt;&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Hanging_gardens_babylon&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshanging-gardens-babylon-small1.jpg&quot; border=&quot;0&quot; /&gt;&lt;br /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;You may think this an exaggeration &amp;hellip;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Hanging_gardens_ruins&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageshanging-gardens-ruins-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;But take a look at the ruins&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;and while the cisterns and storage basins of Mesapotamian cultures were impressive feats of engineering, they cannot compare with the graceful aqueducts that carried clean water to the great Roman cities.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Pont_du_gard_aqueduct&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespont-du-gard-aqueduct-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The great aqueduct at the Pont du Gard&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Aqueducts were among the most magnificent structures of the ancient world and some proudly survive today.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Pont_du_gard_2&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespont-du-gard-2-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Still standing, and you can walk atop it&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The water fountains that continue to define the splendor of &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt; were important parts of the city&amp;rsquo;s drinking water provision over 2,000 years ago.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: fuchsia; FONT-FAMILY: Arial; mso-highlight: fuchsia&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Roman_fountain_faucet&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-fountain-faucet-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The faucet&amp;#8217;s new &amp;hellip;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;Rome&lt;/span&gt;&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt; is also the first major city we know of that managed drinking water as a priced resource. &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The more I investigate the cities, the more I find all roads lead to &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;br /&gt;&lt;img alt=&quot;Roman_road_in_britain&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-road-in-britain-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Even from far Britannia, the road leads to &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;I&amp;#8217;ve previously posted about &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt; as &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2006/03/the_earliest_ap.html&quot;&gt;the inventors of apartments (&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;insulae&lt;/i&gt;),&lt;/a&gt; and of &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/02/worlds-first-homeownership-subsidy.html&quot;&gt;the world&amp;#8217;s first homeownership subsidy&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The Romans appear to be the first culture that seriously thought about civic infrastructure, from their roads to their forums.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Roman_road_cross_section&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-road-cross-section-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;We find the same attention to long-term viability inherent in the Roman approach to water, where the world&amp;#8217;s largest city was sustained on the world&amp;#8217;s first municipal water supply that mixed a free public good subsidized by the state, and the world&amp;#8217;s first private pricing market in water.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;1.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;The city&amp;#8217;s growth was constrained by water&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The pre-urban &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Rome&lt;/st1:place&gt;&lt;/st1:city&gt; was founded among the seven hills because water was plentiful:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Because of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;&amp;rsquo;s high water table, there was plentiful water available from local wells and springs.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The great water engineer of &lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;, Frontinus, makes this clear at the very beginning of his treatise of water management, &lt;i&gt;De Aquis Urbis Romae, &lt;/i&gt;when he states that &amp;ldquo;the Romans were satisfied with such waters as they drew from the &lt;st1:place w:st=&quot;on&quot;&gt;Tiber&lt;/st1:place&gt;, from wells, or from springs. Esteem for Springs still continues.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Urbanization increased population density, and that led to a tougher problem: not getting the water in, but getting the effluvia out:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Outflow&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesoutflow-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;It&amp;#8217;s not quite so clean coming out&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Over time, however, as the city&amp;rsquo;s population grew the water of the &lt;st1:place w:st=&quot;on&quot;&gt;Tiber&lt;/st1:place&gt; became increasingly polluted, particularly because the city&amp;rsquo;s main sewer, the &lt;i&gt;Cloaca Maxima,&lt;/i&gt; flowed directly into it.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;br /&gt;Just by itself, the Cloaca Maxima is an impressive feat of organization and engineering.&lt;br style=&quot;mso-special-character: line-break&quot;&gt;&lt;br style=&quot;mso-special-character: line-break&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Cloaca_maxima&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagescloaca-maxima-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The Cloaca Maxima&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The good news is it&amp;#8217;s well built&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The bad news it flows into the water supply&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;2.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Water requirements rose faster than population, as urbanization increased demand&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;When we think of Roman water, we think of aqueducts, those repeated demonstrations of the load-bearing capacity of arches.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Sevilla_aqueduct_raiilroad&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagessevilla-aqueduct-raiilroad-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;So strong they could bear the load of a train or auto traffic&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;While aqueducts play a critical part in the story of Roman drinking water, that was not their original purpose.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;The main reason for construction of the aqueducts was not hygienic but social.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Bath&lt;/st1:city&gt;&lt;/st1:place&gt; houses were an integral part of Roman society and they required large volumes of water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In other words, as the Romans became both richer and more urban, they demanded better hygiene, and a form of social relaxation.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Bath&lt;/st1:city&gt;&lt;/st1:place&gt; houses are a civic feature, something necessary only in a city, where fresh water for bathing is unavailable because it has been built over.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Roman_bath_layout&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesroman-bath-layout-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;A whole fitness center and social club&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Increased supply did not sate the Romans; instead it led to increased demand.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The ready availability of a reliable source of clean water from the aqueducts spurred demands for its water to be used for drinking, fountains, gardens, and even public toilets.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;3.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Water demand spurred technological innovation&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In&amp;nbsp;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html&quot;&gt;Part 1&lt;/a&gt;&amp;nbsp;I observed that management of water presupposes (x) technology, and (y) legal and societal constructs.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Moving water involves technological constructs.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Storing water requires large physical constructs.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Protecting water requires legal and social constructs.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Put that all together and it means cities cannot survive, much less expand, without state-of-the-art large-scale infrastructure &amp;ndash; like aqueducts:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Rome&lt;/span&gt;&lt;/st1:city&gt;&lt;/st1:place&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&amp;rsquo;s first aqueduct, the &lt;i&gt;Appia&lt;/i&gt;, was built in 312 BC.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Aqua_appia&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqua-appia-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Remains of the Aqua Appia&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;In all, eleven aqueducts were constructed over approximately 550 years.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The &lt;i&gt;Marcia&lt;/i&gt; was the third aqueduct, built in 144 BC, and much larger than its predecessors.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Aqua_marcia&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqua-marcia-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;A segment of the Aqua Marcia&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Brought into the city at a great height, the &lt;i&gt;Marcia&amp;rsquo;s &lt;/i&gt;waters were distributed throughout the city by gravity and its sweet waters were primarily used for drinking water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Aqua_marcia_map&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqua-marcia-map-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;A single aqueduct running 56 miles&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;Aqueduct water was piped into large catch basins and then into storage reservoirs known as &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;castella&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;.&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt; From these, three piping systems branched out, each dedicated to a different use.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;One set of pipes was used for the city&amp;rsquo;s basins and fountains (&lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;usus publici&lt;/i&gt;&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt;); the second set was dedicated to private uses (&lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;privati&lt;/i&gt;&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt;); and the last set to bath houses (&lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;balneae&lt;/i&gt;&lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt;).&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;A priority system ensured that public needs were served first, then private uses, than baths.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It&amp;#8217;s evident that the technological innovation also required civic organization.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;4.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Water management was a municipal activity&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Infrastructure of the physical and economic scale represented by fifty-mile long aqueducts could not be undertaken, at least in those times, by private oligarchs or plutocrats.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;That much raw material, labor, organization, and money, was the purview of the state.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;In the time of Emperor Augustus, the number of &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;lacus&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy&quot;&gt; &lt;span style=&quot;mso-bidi-font-style: italic&quot;&gt;increased dramatically, from 91 to almost 600.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;It&amp;#8217;s significant, I think, that the major building was done promptly after &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt; had become an empire, not a republic.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;As Malott has written, following the overthrow of the Republic,&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 1in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-style: italic; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The early emperors combated this dwindling sense of civic duty by using the aqueducts&amp;rsquo; propagandistic power to replace self-interest in the state with dependence on the state, which proved to be much more effective in the end.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Maybe.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Or maybe cost at the scale to build aqueducts is difficult to ram a fractious assembly.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Throughout history, massive building has signaled the will of a single leader, be he military or otherwise (think Robert Moses).&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Robert_moses_arnold_newman&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesrobert-moses-arnold-newman-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;How dare you say I&amp;#8217;m imperial!&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;And many of these were magnificently decorated with 300 bronze and marble statues and 400 marble columns.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;These ornate water masterpieces strengthened the tradition of majestic fountains we still associate with &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;But why were they built?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Lacus_curtius2&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageslacus-curtius2-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Ruins of the &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;lacus curtius&lt;/i&gt;, in the Roman Forum&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;Classical scholars suggest these impressive public works were intended, first and foremost, as political statements, to remind the common people that they received their water from imperial beneficence in the name of the Emperor, &lt;/span&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Aqua Nomine Caesaris&lt;/span&gt;&lt;/i&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-style: italic&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;To me, that seems too abstract.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The Roman citizen had no need of fountains to know of the emperor&amp;#8217;s importance.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;I like two other explanations: (a) imperial ego expressing itself as visible largesse, and (b) the awareness of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;&amp;#8217;s &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2007/02/increasing_work.html&quot;&gt;need for workforce housing&lt;/a&gt;.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/02/worlds-first-homeownership-subsidy.html&quot;&gt;We saw the same thing in Constantinople&lt;/a&gt;, where the emperor introduced the &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;panes aedium&lt;/i&gt;, a bread subsidy tied directly to new construction homeownership.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;A great empire needs a great capital, and a great administration needs a great workforce.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Binding them to the emperor through subsidy tied to tenure or home.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Again Professor Salzman quotes Malott:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText&quot; style=&quot;MARGIN: 0in 0in 0pt 1in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-style: italic; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;[It is hard to] believe that the addition of 500 public fountains was truly a necessity [for drinking water supply], especially since wells and springs were apparently still frequently used.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;However, by totally revamping the water system and making it more conspicuous and lavishly decorated, Augustus, and then Claudius after him, wanted to make the people forget that the older aqueducts survived from a time when the Emperor had no power. He wanted to erase the history of the aqueducts before him and suggest that they were his personal possession, and that although they were a free public service, the people still received their water by his generosity and permission.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Emperor_claudius&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesemperor-claudius-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;How stupid can I be?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;img alt=&quot;Rome-claudius&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesrome-2dclaudius-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;If I rule an empire this large?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued tomorrow in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-5-roman-municipal-finance.html&quot;&gt;Part 5&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA&quot;&gt;&lt;br style=&quot;PAGE-BREAK-BEFORE: always; mso-special-character: line-break&quot; clear=&quot;all&quot;&gt;&lt;/span&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
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		<title>The economics of water: Part 3, pre-urban rules for societies</title>
		<link>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html</link>
		<comments>http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-3-pre-urban-rules-for-societies.html#comments</comments>
		<pubDate>Wed, 02 Apr 2008 13:59:27 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cities]]></category>
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		<category><![CDATA[India]]></category>
		<category><![CDATA[Infrastructure]]></category>
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		<category><![CDATA[Urbanization]]></category>

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		<description><![CDATA[[Continued from the previous Part 1 and Part 2.]
&#160;
So far in our examination of the economics of water, drawing from Duke law professor Jim Salzman&#8217;s article Thirst: A Short History of Drinking Water and looking for principles applicable to 21st century urbanization in the world&#8217;s rapidly expanding cities and the spontaneous communities that represent their [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued from the previous <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html">Part 1 </a>and <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html">Part 2</a>.]<?xml:namespace prefix ="" o /><o:p></o:p></span></i></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">So far in our examination of the economics of water, drawing from <a href="http://www.law.duke.edu/fac/salzman/">Duke law professor Jim Salzman</a>&#8217;s article <i style="mso-bidi-font-style: normal"><a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970">Thirst: A Short History of Drinking Water</a></i> and looking for principles applicable to 21st century urbanization in the world&#8217;s rapidly expanding cities and the <a href="http://affordablehousinginstitute.org/blogs/us/2005/10/spontaneous_com.html">spontaneous communities</a> that represent their <a href="http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html">slums</a>, I&#8217;ve dealt with pre-urban rules for individual behavior.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Yet though water may be natural, not earned and not owned, society as a whole has a duty to provide its basic infrastructure, such as wells.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Water_well_uganda" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageswater-well-uganda-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">5.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Water&#8217;s cleanliness must be protected<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Though clean water is a gift of God, humans can pollute it, and even the most primitive societies have (or had) draconian rules to protect its purity:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">[<?xml:namespace prefix ="" st1 /><st1:place w:st="on"><st1:country-region w:st="on">Zimbabwe</st1:country-region></st1:place>]<span style="mso-spacerun: yes">&nbsp; </span>There are clear norms to ensure water quality &ndash; such as prohibitions against doing laundry or making bricks near wells.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Washing_clothes_kenya" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageswashing-clothes-kenya-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Washing clothes in water brought from the well, <st1:place w:st="on"><st1:city w:st="on">Mavoko</st1:city>, <st1:country-region w:st="on">Kenya</st1:country-region></st1:place><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">[<st1:place w:st="on"><st1:country-region w:st="on">India</st1:country-region></st1:place>]<span style="mso-spacerun: yes">&nbsp; </span>Rules for ensuring source water quality are detailed.<span style="mso-spacerun: yes">&nbsp; </span>The water must be approached barefoot, so that shoes do not pollute the source; containers must be properly cleaned before gathering water; no bathing or washing is allowed near the source; etc.<span style="mso-spacerun: yes">&nbsp;&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><st1:place w:st="on"></st1:place></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Bathing_sacred_ganges" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbathing-sacred-ganges-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Bathing in the <st1:place w:st="on">Ganges</st1:place>, sacred if not truly clean<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Bath_waters" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbath-waters-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">The waters at <st1:place w:st="on"><st1:city w:st="on">Bath</st1:city></st1:place>, Georgian over Roman<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">[<st1:place w:st="on"><st1:country-region w:st="on">Australia</st1:country-region></st1:place>]<span style="mso-spacerun: yes">&nbsp; </span>Defecating or starting a fire near a water hole were vitally serious offenses, giving those responsible for the water the right to punish these transgressions by death (though, in practice, this ultimate sanction was usually negotiated away).<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Zimbabwe_harare_homeless" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageszimbabwe-harare-homeless-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">6.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>The aristocracy must be generous<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">We humans are primates who maintain pecking orders &ndash; but those who have more, must provide for those who have less.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy; mso-bidi-font-size: 8.5pt">[<st1:place w:st="on"><st1:country-region w:st="on">India</st1:country-region></st1:place>]<span style="mso-spacerun: yes">&nbsp; </span>Studies of the Bihar in the northeast region of <st1:place w:st="on"><st1:country-region w:st="on">India</st1:country-region></st1:place> reveal some fascinating differences in drinking water management.<span style="mso-spacerun: yes">&nbsp; </span></span><span style="COLOR: navy">Because of the complex social hierarchy, priority of access and management is much more carefully proscribed than in other cultures along social caste lines.<span style="mso-spacerun: yes">&nbsp; </span>As a researcher has written, <o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoBodyTextIndent" style="MARGIN: 0in 0in 0pt 1in"><span style="FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-size: 12.0pt"><font face="Times New Roman">Water is believed to be a medium that transmits pollution when in contact with a person who himself is in a &lsquo;state of pollution.&rsquo;<span style="mso-spacerun: yes">&nbsp; </span>Hence, the upper and lower castes are expected to maintain distinctness of water sources as the lower castes, especially the &ldquo;harijans,&rdquo; are believed to have the potential of transmitting pollution by sharing sources&hellip;<span style="mso-spacerun: yes">&nbsp; </span>The group of community members who actually have ownership and/or access to a public source depends primarily upon caste and differs in accordance with their social affiliations.<o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Dalits_varanasi" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesdalits-varanasi-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Dalits beginning at <st1:city w:st="on"><st1:place w:st="on">Varanasi</st1:place></st1:city><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy">As a result, only upper castes may make use of sacred source waters.<span style="mso-spacerun: yes">&nbsp; </span>The rule of sharing, however, is widely observed and those in need must be given access to water.<span style="mso-spacerun: yes">&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy">This social differentiation also plays out in water management.<span style="mso-spacerun: yes">&nbsp; </span>Upper castes are responsible for maintaining the water sources and assign manual labor to the lower castes.<span style="mso-spacerun: yes">&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"></span>&nbsp;</p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The rich have a duty to create the group resource.<span style="mso-spacerun: yes">&nbsp; </span>That is, the rich pay the non-recoverable hard cost.<span style="mso-spacerun: yes">&nbsp; </span>This early form of charitable contribution is a societally mandated form of <a href="http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-2-the-basic-model.html">the Basic Model of infrastructure finance</a>.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Business_financial_model" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbusiness-financial-model-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Substitute &#8216;rich&#8217; or &#8216;aristocracy&#8217; for &#8216;government&#8217; and you have the pre-urban ethos in a nutshell.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">7.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Infrastructure belongs to the community, not the individual<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Akin to the Basic Model, even though the resource itself is divine &ndash; not earned, not made, not ours &ndash; we who have created the operating model to protect it have dibs on it:<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Studies of communal lands in <st1:place w:st="on"><st1:country-region w:st="on">Zimbabwe</st1:country-region></st1:place> have found remarkably persistent norms of drinking water management into the present.<span style="mso-spacerun: yes">&nbsp; </span>While wells and boreholes are often built today for private purposes, they are made available for communal drinking.<o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in"><font size="3"><font face="Times New Roman"><span style="COLOR: navy">[<st1:country-region w:st="on"><st1:place w:st="on">Zimbabwe</st1:place></st1:country-region>] Moreover, people must ask permission from the owner prior to using the well.<span style="mso-spacerun: yes">&nbsp; </span>If they gather too much water, use it for a different purpose than requested, or are unhygienic near the well, then their access rights are limited.<span style="mso-spacerun: yes">&nbsp; </span>As one person described, &ldquo;You go to someone you are in good books with.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p></o:p></span></font></font></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><st1:city w:st="on"><st1:place w:st="on"></st1:place></st1:city></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Jewish_water_carriers_minsk" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesjewish-water-carriers-minsk-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Jewish water carriers, <st1:place w:st="on"><st1:city w:st="on">Minsk</st1:city></st1:place><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">8.<span style="mso-tab-count: 1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Water hoarding or ownership is sinful &ndash; and will be met with retaliation<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Beneath the surface of all this polite society are real threats: the group resource may be destroyed by any disaffected individual.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Poison_bottle" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespoison-bottle-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">One little bottle of poison can ruin a well<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">As the most comprehensive study of drinking water for the [<st1:place w:st="on"><st1:country-region w:st="on">Zimbabwe</st1:country-region></st1:place>] region has concluded, &ldquo;Cutting across all the different tenurial systems is the notion that no one should be denied access to safe drinking water.&rdquo;<span style="mso-spacerun: yes">&nbsp; </span>Interestingly, the impetus for sharing is sanction-based rather than religious.<span style="mso-spacerun: yes">&nbsp; </span>Field researchers report a general fear that <b style="mso-bidi-font-weight: normal">denying water to someone could lead the drinking well to be poisoned</b> &ndash; either literally through adding a poison or spiritually through witchcraft.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"></span><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Poisoning_the_well" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespoisoning-the-well-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Poisoning the well at <st1:place w:st="on">Calvary</st1:place><o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Great rule for a pre-technological, invariant resource.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in"><span style="COLOR: navy"><o:p><font face="Times New Roman" size="3">&nbsp;</font></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">The net result is that drinking water remains a non-economic good, with no requirement of payment or gifts for access.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in"><span style="COLOR: navy"><font size="3"><font face="Times New Roman">Outright bans, however, are rare for fear of retribution.<span style="mso-spacerun: yes">&nbsp; </span>One well owner who denied access to his water found a dead dog floating in the well two days after locking the gates.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></font></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Mutually Assured Destruction (MAD) existed long before John Foster Dulles rediscovered it.<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua"><o:p><img alt="John_foster_dulles" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesjohn-foster-dulles-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">They didn&#8217;t say I was MAD back then<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In the pre-urban <i style="mso-bidi-font-style: normal"><a href="http://en.wikipedia.org/wiki/Modus_vivendi">modus vivendi</a></i>, water was an element, a miracle and a gift.<span style="mso-spacerun: yes">&nbsp; </span>It was not a commodity, not an asset, not a product, not an output.<span style="mso-spacerun: yes">&nbsp; </span>Lack of water constrained humanity&#8217;s growth, and the growth of humanity&#8217;s civilization and culture.<span style="mso-spacerun: yes">&nbsp; </span><o:p></o:p></span></p>
<p class="MsoBodyText2" style="MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in"><span style="FONT-SIZE: 12pt; COLOR: navy; mso-bidi-font-size: 10.0pt"><o:p><font face="Times New Roman">&nbsp;</font></o:p></span></p>
<p class="MsoBodyText2" style="MARGIN: 0in 0in 0pt 0.5in"><span style="FONT-SIZE: 12pt; COLOR: navy; mso-bidi-font-size: 10.0pt"><font face="Times New Roman">Clearly, then, access to water in ancient and indigenous cultures was not premised on economic relations.<span style="mso-spacerun: yes">&nbsp; </span>So when did the transition to commodification of water start to occur?<span style="mso-spacerun: yes">&nbsp; </span>There is no better place to look than ancient <st1:place w:st="on"><st1:city w:st="on">Rome</st1:city></st1:place>.<o:p></o:p></font></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p><img alt="Aqueduct_segovia" src="http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqueduct-segovia-small.jpg" border="0" /></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">Who paid for that thing, anyhow?<o:p></o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="MARGIN: 0in 0in 0pt"><i style="mso-bidi-font-style: normal"><span style="FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt">[Continued in a few days in <a href="http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html">Part 4</a>.]<o:p></o:p></span></i></p>
<p><span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><br style="PAGE-BREAK-BEFORE: always; mso-special-character: line-break" clear="all"></span></p>
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<input type="hidden" name="postContent_0" value="&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued from the previous &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-1-piping-invents-cities.html&quot;&gt;Part 1 &lt;/a&gt;and &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/the-economics-of-water-part-2-pre-urban-rules-for-individuals.html&quot;&gt;Part 2&lt;/a&gt;.]&lt;?xml:namespace prefix =&quot;&quot; o /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;So far in our examination of the economics of water, drawing from &lt;a href=&quot;http://www.law.duke.edu/fac/salzman/&quot;&gt;Duke law professor Jim Salzman&lt;/a&gt;&amp;#8217;s article &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://papers.ssrn.com/sol3/papers.cfm?abstract_id=869970&quot;&gt;Thirst: A Short History of Drinking Water&lt;/a&gt;&lt;/i&gt; and looking for principles applicable to 21st century urbanization in the world&amp;#8217;s rapidly expanding cities and the &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/10/spontaneous_com.html&quot;&gt;spontaneous communities&lt;/a&gt; that represent their &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2005/05/slums_are_econo.html&quot;&gt;slums&lt;/a&gt;, I&amp;#8217;ve dealt with pre-urban rules for individual behavior.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Yet though water may be natural, not earned and not owned, society as a whole has a duty to provide its basic infrastructure, such as wells.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Water_well_uganda&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageswater-well-uganda-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;5.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Water&amp;#8217;s cleanliness must be protected&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Though clean water is a gift of God, humans can pollute it, and even the most primitive societies have (or had) draconian rules to protect its purity:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;[&lt;?xml:namespace prefix =&quot;&quot; st1 /&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;Zimbabwe&lt;/st1:country-region&gt;&lt;/st1:place&gt;]&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;There are clear norms to ensure water quality &amp;ndash; such as prohibitions against doing laundry or making bricks near wells.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Washing_clothes_kenya&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageswashing-clothes-kenya-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Washing clothes in water brought from the well, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Mavoko&lt;/st1:city&gt;, &lt;st1:country-region w:st=&quot;on&quot;&gt;Kenya&lt;/st1:country-region&gt;&lt;/st1:place&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;[&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;India&lt;/st1:country-region&gt;&lt;/st1:place&gt;]&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Rules for ensuring source water quality are detailed.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The water must be approached barefoot, so that shoes do not pollute the source; containers must be properly cleaned before gathering water; no bathing or washing is allowed near the source; etc.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;/st1:place&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Bathing_sacred_ganges&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbathing-sacred-ganges-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Bathing in the &lt;st1:place w:st=&quot;on&quot;&gt;Ganges&lt;/st1:place&gt;, sacred if not truly clean&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Bath_waters&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbath-waters-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;The waters at &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Bath&lt;/st1:city&gt;&lt;/st1:place&gt;, Georgian over Roman&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;[&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;Australia&lt;/st1:country-region&gt;&lt;/st1:place&gt;]&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Defecating or starting a fire near a water hole were vitally serious offenses, giving those responsible for the water the right to punish these transgressions by death (though, in practice, this ultimate sanction was usually negotiated away).&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Zimbabwe_harare_homeless&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imageszimbabwe-harare-homeless-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;6.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;The aristocracy must be generous&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;We humans are primates who maintain pecking orders &amp;ndash; but those who have more, must provide for those who have less.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy; mso-bidi-font-size: 8.5pt&quot;&gt;[&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;India&lt;/st1:country-region&gt;&lt;/st1:place&gt;]&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Studies of the Bihar in the northeast region of &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;India&lt;/st1:country-region&gt;&lt;/st1:place&gt; reveal some fascinating differences in drinking water management.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;Because of the complex social hierarchy, priority of access and management is much more carefully proscribed than in other cultures along social caste lines.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As a researcher has written, &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyTextIndent&quot; style=&quot;MARGIN: 0in 0in 0pt 1in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 11pt; COLOR: navy; mso-bidi-font-size: 12.0pt&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Water is believed to be a medium that transmits pollution when in contact with a person who himself is in a &amp;lsquo;state of pollution.&amp;rsquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Hence, the upper and lower castes are expected to maintain distinctness of water sources as the lower castes, especially the &amp;ldquo;harijans,&amp;rdquo; are believed to have the potential of transmitting pollution by sharing sources&amp;hellip;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The group of community members who actually have ownership and/or access to a public source depends primarily upon caste and differs in accordance with their social affiliations.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Dalits_varanasi&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesdalits-varanasi-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Dalits beginning at &lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Varanasi&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;As a result, only upper castes may make use of sacred source waters.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;The rule of sharing, however, is widely observed and those in need must be given access to water.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;This social differentiation also plays out in water management.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Upper castes are responsible for maintaining the water sources and assign manual labor to the lower castes.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;/span&gt;&amp;nbsp;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;The rich have a duty to create the group resource.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;That is, the rich pay the non-recoverable hard cost.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;This early form of charitable contribution is a societally mandated form of &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/03/meta-finance-part-2-the-basic-model.html&quot;&gt;the Basic Model of infrastructure finance&lt;/a&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Business_financial_model&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesbusiness-financial-model-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Substitute &amp;#8216;rich&amp;#8217; or &amp;#8216;aristocracy&amp;#8217; for &amp;#8216;government&amp;#8217; and you have the pre-urban ethos in a nutshell.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;7.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Infrastructure belongs to the community, not the individual&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Akin to the Basic Model, even though the resource itself is divine &amp;ndash; not earned, not made, not ours &amp;ndash; we who have created the operating model to protect it have dibs on it:&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Studies of communal lands in &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;Zimbabwe&lt;/st1:country-region&gt;&lt;/st1:place&gt; have found remarkably persistent norms of drinking water management into the present.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;While wells and boreholes are often built today for private purposes, they are made available for communal drinking.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;[&lt;st1:country-region w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;Zimbabwe&lt;/st1:place&gt;&lt;/st1:country-region&gt;] Moreover, people must ask permission from the owner prior to using the well.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;If they gather too much water, use it for a different purpose than requested, or are unhygienic near the well, then their access rights are limited.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;As one person described, &amp;ldquo;You go to someone you are in good books with.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/font&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;&lt;st1:place w:st=&quot;on&quot;&gt;&lt;/st1:place&gt;&lt;/st1:city&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Jewish_water_carriers_minsk&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesjewish-water-carriers-minsk-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Jewish water carriers, &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Minsk&lt;/st1:city&gt;&lt;/st1:place&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;8.&lt;span style=&quot;mso-tab-count: 1&quot;&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp; &lt;/span&gt;Water hoarding or ownership is sinful &amp;ndash; and will be met with retaliation&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Beneath the surface of all this polite society are real threats: the group resource may be destroyed by any disaffected individual.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Poison_bottle&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespoison-bottle-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;One little bottle of poison can ruin a well&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;As the most comprehensive study of drinking water for the [&lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:country-region w:st=&quot;on&quot;&gt;Zimbabwe&lt;/st1:country-region&gt;&lt;/st1:place&gt;] region has concluded, &amp;ldquo;Cutting across all the different tenurial systems is the notion that no one should be denied access to safe drinking water.&amp;rdquo;&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Interestingly, the impetus for sharing is sanction-based rather than religious.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Field researchers report a general fear that &lt;b style=&quot;mso-bidi-font-weight: normal&quot;&gt;denying water to someone could lead the drinking well to be poisoned&lt;/b&gt; &amp;ndash; either literally through adding a poison or spiritually through witchcraft.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;/span&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Poisoning_the_well&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagespoisoning-the-well-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Poisoning the well at &lt;st1:place w:st=&quot;on&quot;&gt;Calvary&lt;/st1:place&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Great rule for a pre-technological, invariant resource.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot; size=&quot;3&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;The net result is that drinking water remains a non-economic good, with no requirement of payment or gifts for access.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in .5in&quot;&gt;&lt;span style=&quot;COLOR: navy&quot;&gt;&lt;font size=&quot;3&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Outright bans, however, are rare for fear of retribution.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;One well owner who denied access to his water found a dead dog floating in the well two days after locking the gates.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;Mutually Assured Destruction (MAD) existed long before John Foster Dulles rediscovered it.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; BACKGROUND: aqua; FONT-FAMILY: Arial; mso-highlight: aqua&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;John_foster_dulles&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesjohn-foster-dulles-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;They didn&amp;#8217;t say I was MAD back then&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;In the pre-urban &lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;a href=&quot;http://en.wikipedia.org/wiki/Modus_vivendi&quot;&gt;modus vivendi&lt;/a&gt;&lt;/i&gt;, water was an element, a miracle and a gift.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;It was not a commodity, not an asset, not a product, not an output.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;Lack of water constrained humanity&amp;#8217;s growth, and the growth of humanity&amp;#8217;s civilization and culture.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText2&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in; tab-stops: 0in 1.0in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 12pt; COLOR: navy; mso-bidi-font-size: 10.0pt&quot;&gt;&lt;o:p&gt;&lt;font face=&quot;Times New Roman&quot;&gt;&amp;nbsp;&lt;/font&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoBodyText2&quot; style=&quot;MARGIN: 0in 0in 0pt 0.5in&quot;&gt;&lt;span style=&quot;FONT-SIZE: 12pt; COLOR: navy; mso-bidi-font-size: 10.0pt&quot;&gt;&lt;font face=&quot;Times New Roman&quot;&gt;Clearly, then, access to water in ancient and indigenous cultures was not premised on economic relations.&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;So when did the transition to commodification of water start to occur?&lt;span style=&quot;mso-spacerun: yes&quot;&gt;&amp;nbsp; &lt;/span&gt;There is no better place to look than ancient &lt;st1:place w:st=&quot;on&quot;&gt;&lt;st1:city w:st=&quot;on&quot;&gt;Rome&lt;/st1:city&gt;&lt;/st1:place&gt;.&lt;o:p&gt;&lt;/o:p&gt;&lt;/font&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&lt;img alt=&quot;Aqueduct_segovia&quot; src=&quot;http://affordablehousinginstitute.org/blogs/us/wp-content/uploads/imagesaqueduct-segovia-small.jpg&quot; border=&quot;0&quot; /&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;Who paid for that thing, anyhow?&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial&quot;&gt;&lt;o:p&gt;&amp;nbsp;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p class=&quot;MsoNormal&quot; style=&quot;MARGIN: 0in 0in 0pt&quot;&gt;&lt;i style=&quot;mso-bidi-font-style: normal&quot;&gt;&lt;span style=&quot;FONT-SIZE: 8pt; FONT-FAMILY: Arial; mso-bidi-font-size: 10.0pt&quot;&gt;[Continued in a few days in &lt;a href=&quot;http://affordablehousinginstitute.org/blogs/us/2008/04/the-economics-of-water-part-4-rome-invents-the-municipality.html&quot;&gt;Part 4&lt;/a&gt;.]&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/i&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA&quot;&gt;&lt;br style=&quot;PAGE-BREAK-BEFORE: always; mso-special-character: line-break&quot; clear=&quot;all&quot;&gt;&lt;/span&gt;&lt;/p&gt;
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