This paper analyzes the experience of two communities in providing drinking water, sewer service, and sewage treatment to their residents. The communities under study are Palomas and Ojinaga located along the USA-Mexico border in the Mexican state of Chihuahua. The paper discusses the importance of incorporating what the World Bank (1997) calls “client surveys” as a public participation mechanism to obtain information regarding the level of service demanded by the community as well as residents' ability and willingness to pay for those services. Currently, there is a debate concerning the development of a new strategy or institutional arrangements for the delivery and provision of water. The main conclusion of this article is that for any institutional arrangement to succeed, a public participation process that includes information sharing and education of the community is necessary.