There's no competition for water here. And even if there were, what are they competing on? They don't produce water, they don't manufacture anything, there's no

There's no competition for water here. And even if there were, what are they competing on? They don't produce water, they don't manufacture anything, there's no innovation to be had. The water is the same whatever the case. There's no advantage to a market. So how do you seek profit as a water company? You can't seek more customers, since that is constrained by population. All that's left is reducing overheads and increasing margins. By reducing quality of service. By not improving infrastructure, or letting it fall into disrepair. Or, as discussed here, dumping sewage and ignoring costly environmental responsibilities. A tragedy of the commons. As for the regulator. They are duty bound to ensure water companies are making profits. The incentives are all wrong.