The Water Conspiracy

There's been a lot in the news about bottled water since it was announced that Aquafina would have to label their water as coming from the tap and not some magical spring. I found this interesting excerpt on politics and tap water in a great book called What to Eat:

Organic Style's investigators collected state and EPA reports on water quality and were horrified by what they found. Their excellent advice: "get a copy of the report from your utility company or have your tap water tested. If you're concerned about the water's safety... install a filter."

What this means is that the government no longer guarantees the safety of drinking water. Instead, you are responsible for getting your utility's safety report, paying for having your tap water tested, and installing a filter. It makes good sense to do these things, but here is another place where economists talk about "externalized" costs. The government allows companies to dump chemicals into streams and contaminate drinking water, but instead of requiring them to pay for prevention or cleanup, it shifts the burden to you. Your water utility bill does not cover anywhere near the true costs of providing clean water, so you pay for water in three additional ways: in taxes to pay for cleaning up polluted water, in taxes that pay for subsidizing companies that pollute in the first place, and in the price you pay for bottled water at the grocery store.

Source: Nestle, Marion. What to Eat. North Point Press, 2006.