Private participation in the U.S. drinking water and wastewater sector is evolving, with third-party operations and maintenance (O&M) providers playing a growing role. Traditionally, local governments managed these essential services themselves. Today, private companies increasingly handle O&M, bringing specialized expertise, advanced technology, and workforce support to help utilities overcome mounting challenges like aging infrastructure, regulatory demands, and financial constraints.

 Valued at nearly US$3 billion annually, the third-party O&M market now supports drinking water and wastewater services for over 38.6 million Americans. This approach allows utilities—many facing workforce shortages, rising costs, and complex demands—to maintain service quality without managing everything in-house. This outsourcing trend helps utilities meet public needs without overextending their resources.

Driven by industry consolidation, major players like private equitybacked Inframark and Canada’s H2O Innovation are expanding through strategic mergers and acquisitions (M&A), reshaping the landscape and pushing innovation forward. Third-party O&M providers now offer digital solutions and advanced services, from water treatment systems to real - time monitoring, enabling utilities to meet stringent water quality standards.

Bluefield Research has tracked over 2,000 O&M contracts since the 1970s, revealing trends in contract sizes, geographic reach, and service innovations. This dataset underscores how leading O&M providers are crucial in supporting utilities and ensuring safe, reliable water services in an increasingly complex environment.