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This paper covers four principal topics: the current status of the operation and maintenance ("O&M") market; key strengths of the private sector in providing O&M services under contract to public agencies; methods for public agencies to become more competitive with the private sector; and a discussion regarding the equalities between public agencies and the private sector. In reviewing the subject of private operation of water facilities, the author focuses primarily on private firms which provide O&M services under contract with public agencies as opposed to the O&M practices of investor-owned water systems. Examples of O&M initiatives are drawn from both the water industry as well as the wastewater industry because of the important lessons to be learned from each.