The decision to remunicipalise the water system due to corruption, lack of transparency and abusive tariffs was taken in March 2000 and implemented in 2001, with the immediate cancellation of the contract with private company Suez.

Under municipal water company Régie des Eaux de Grenoble (REG) investment in infrastructure increased threefold, while maintaining the price of water at lower and steadier levels. The new public enterprise adopted an advanced form of public participation in decision-making by establishing a water users’ committee. One third of the members of the REG’s board of directors are now civil society representatives and the other two thirds are municipal councillors.

A few years after Grenoble’s experience, the City of Paris decided to remunicipalise its water service. Between 2000 and 2008, this allowed users to save €20 million, mainly through improved maintenance resulting in more efficient water use. The city then launched a social water tariff policy: households for whom the cost of the service exceeds 2.5% of their annual income are reimbursed part of the amount by the CAF. In parallel to the social strategy, the goal is to maintain a pure and untreated water supply – the only case in France.