Financial performance of community-managed small-town water systems in north-western Ghana

In a quest to ensure sustainability of water services delivery, the provision and management of potable water in small towns has gone through reforms, resulting in the current practice of community-based water management. It is assumed that community level actors are closest to the water resources and are in a better position to devise strategies to manage them. This paper assesses the financial self-sufficiency of community-managed water systems in Ghana. The study was based on content analysis of the water systems finances and separate focus group discussions with water management bodies. The main source of revenue for operation and maintenance is through water user-charges. While the expenditure pattern remains relatively stable, there is a highly undulating revenue pattern. The presence of unregulated alternative sources of water, especially in the rainy season, and weak oversight responsibility on water management are detrimental to the financial self-sufficiency of the water systems.