Wholesale contracts are a prudent business option for smaller cities and rural systems that desire to maintain local control while addressing quality requirements and cost limitations. These contracts benefit both sellers (who gain a larger customer base over which to spread costs) and buyers (who gain a product that meets state and federal standards while holding down local costs). As part of a larger strategic planning process, the Kansas City, Mo., Water Services Department undertook an extensive telephone survey of water providers to assess their use of and interest in wholesale contracts. The survey indicated that buy-sell arrangements were common; wholesale contracts must be reached through a long-term, mutually acceptable business relationship; and regular statements of support by leaders reassure uncertain potential wholesale customers.
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