URE 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 case of older systems as much as 50% (USHR, 2004). Leakage is a serious economic burden. In Detroit for example, there is water rationing and pressure problems in midsummer, and lost water is valued at USD 23 million per year - added to which there are other associated economic costs and health-related issues. There are problems nationwide with the need to replace lead service pipes and measures to reduce their health impact. The cause of the problems is said to be the change in design standards over the years. In the 1890s, systems had design lives of 100 years plus; by the late 20th century this had decreased to between 30 and 50 years (USHR, 2004). Thus many systems are past their sell-by date, as the American Water Works Association observed: Considering the huge wave of aging pipe infrastructure created in the last century, we can expect to see significant increases in break rates and therefore repair costs over the coming decades. In the utilities studied by AWWA, there will be a three-fold increase in repair costs by the year 2030 despite a concurrent increase of 31/2 times in annual investments to replace pipes. (USHR, 2004) On top of this there are increasing problems arising from sewers and stormwater. Added to that are the pressures to extend systems and provide additional capacity for supply and sewage systems to cope with growth and the additional operation costs this implies (USHR, 2004). Since 1996, grants for water supply have been made through Congress under the Clean Water State Revolving Loan Funds, which in 2004 amounted to USD 7 billion. Approximately 40% is provided for treatment needs, 30% for transmission and distribution and the remainder for storage, source development and other needs. The amounts are based on USEPA's Drinking Water Needs Survey, carried out every 5 years for the documented needs for the next 