itutional inertia and powerful élites rather than radical, except in the face of crisis (Hay, 1999). Given the potential technological changes outlined above, the probable increasing role of private sector participation in all aspects of water management will require a profound re-examination of the regulation institutions in all countries. Continuing urbanisation will put a strain on local political institutions as they struggle to come to terms with increasing demands; finding the necessary financial and human resources to meet those demands; and the allocation of those resources - all this at a time when raising tax revenues is increasingly difficult. The nature of urbanisation will require a greater openness about the appropriateness, setting and achievability of levels of service and their sustainability. Institutions in the developing countries will INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE have to adapt to cater for large numbers of poor people; part of the solution will lie in partnerships with civil society to deliver services. Transparency will be an important element that must go together with forms of public involvement and participation. Given these developments there could be a tendency towards centralising local control - forms of paternalism, when in fact the situations require the opposite course of action. The possible future configuration of water services provision will involve debates about the role of the state in the ongoing development of paradigms for the way in which water is seen and used (e.g. Hassan, 2001). Overall, political changes are expected to increase the relative costs of future water service delivery, principally due to: planning, land use and urbanisation control processes; effectiveness of governance up and down the process; the forms and needs of revenue collection (which may not improve due to political will); increasing ser