Service providers in urban and rural areas present different characteristics, both in the number of entities and in their organizational structure, management, human and technical capacities, availability of financial resources, etc. (Mejía et al., 2016); in addition, the rural areas have different challenges for service delivery, such as geographical dispersion, and lack of infrastructure. Standards developed for urban service providers are usually not appropriate for small-scale rural operators. For example, Colombia has developed strategies to differentiate service delivery standards of WASH services in rural areas. The Ministry of Housing, City and Territory, through the Law 1753 of 2015 and several subsequent decrees, allowed municipalities, districts, providers and administrators of alternative solutions to choose the most appropriate solution to ensure access to water and basic sanitation, according to the particular conditions of each area in terms of technical, operational and socioeconomic context (MinVivienda, 2015). In this new context, the Regulatory Agency defined differentiated quality standards of efficiency, coverage and quality adapted to rural conditions. In Peru, the Board Resolution No. 015-2020-SUNASS-CD approved the quality standards for the provision of sanitation services provided by community organizations in rural areas (SUNASS, 2020). This regulation addresses aspects related to access to services, quality of services, collection of the family fees and closing and reopening of connections.

In Peru, only 34% of the approximately more than 24,000 communal organizations monitored in 2019 had a registration certificate issued by the municipality (SUNASS, n.d.). In Paraguay, only 600 of the existing 2,000 drinking water management boards are registered with the National Environmental Sanitation Service (SENASA; Mejía et al., 2016). These figures are approximate since few countries in the region have robust data on the number of community providers operating in their territory, the percentage of formalization and the status and quality of the services they offer (Zambrana, 2017). In Colombia, by 2023, the SSPD had registered 2,410 rural providers out of the 33,425 villages in the country (SSPD, 2023). Some countries have taken steps to reverse this situation through regulatory measures. In Costa Rica, the Regulatory Authority of Public Services (ARESEP) endorsed the regulation of the Administrative Associations of Communal Aqueduct and Sewerage Systems (ASADAS), establishing a specific legal framework to regulate the operation of organizations for the community management of WASH services (Baldioceda et al., 2020). In Nicaragua, in 2010, Law 722 Special Law on Drinking Water and Sanitation Committees was issued to establish the provisions for the organization, constitution, legalization and operation of the Drinking Water and Sanitation Committees (CAPS) existing in the country and those that will be organized under this law (República de Nicaragua, 2010a; República de Nicaragua, 2010b). In Colombia, municipalities and districts are empowered to support the processes of legal constitution and community strengthening of organized communities that manage alternative solutions for WASH services in rural areas (MinVivienda, 2022).

The implementation of a regulatory system for the WASH sector in rural areas requires coordinated efforts among operators, local, regional and national governments, associations and federations, watershed stakeholders, service beneficiaries, among others, to support legal, organizational and operational conditions (Camacho and Casados, 2017). Several studies point to the need for cooperation between regulatory entities, municipalities and rural operators, as well as coordination between regulatory policies and strategies, to ensure the quality of services (Hantke-Domas and Jouravlev, 2011). Some countries have made progress in this regard. At institutional level, Colombia developed the Departmental Water and Sanitation Plans for the Entrepreneurial Management of Water and Sanitation Services (PDA) as a strategy to accelerate the growth of access to WASH services and improve their quality by facilitating, among others, the effective interinstitutional coordination within each level and between different levels of government and to exercise better control and supervision over resources and compliance with regulations (Carrasco, 2011). In other countries, such as Ecuador or Nicaragua, coordination and alliances between institutions have facilitated the improvement of sector governance, better coordination between rural providers and public institutions, or the approval of projects with various sources of financing and various actors in their implementation (Vallecillo and López, 2021; Quezada et al., 2020).

The complexity of WASH services management in rural areas requires the creation of incentives to ensure the accessibility, affordability, quality and sustainability of services, particularly as the rural population has in average lower and more irregular income than urban. In Peru, the Incentive Program for the Improvement of Municipal Management was issued with the objective of simplifying procedures, generating favorable conditions for developing businesses and promoting local competitiveness, and improving the provision of local public services rendered by local governments (Cabrera and Coronel, 2020). In the Dominican Republic, the National Institute of Drinking Water and Sewerage (INAPA) subsidies the cost of electricity for water pumping systems in rural areas. In addition, the National Energy Commission (CNE) has implemented investment projects in INAPA’s water systems to reduce energy consumption associated with pumping, based on technological renovation processes, seeking savings in consumption of between 25 and 40% (FOCARD-APS, 2018). Finally, in Costa Rica the government recognized the situation of the ASADAS, with limited resources for the management of rural systems, and the Law of Exoneration of the ASADAS was issued, which exempts them from the payment of stamps and duties, sales tax, among other taxes (SCIJ, 2021).

Monitoring and controlling access to water resources and wastewater discharges from different sectors is essential to ensure the availability and quality of water for human consumption and environmental protection (World Bank, 2022). In certain circumstances, rural households may have additional water demands for non-residential uses, such as crop irrigation and animal husbandry for their own consumption. Impacts of climate change on rural populations are numerous and extend to issues of food insecurity and climate-induced migration (Romano et al., 2021); hence climate adaptation needs to be integrated within wider water resources management in rural areas. The regulation of the WASH sector in rural areas should consider IWRM and adaptation to climate change. While some progress has been made, further articulation is needed in most countries. In Ecuador, the Public Water Registry must include, among others, entities providing water-related public services, including community systems, authorizations for water use and development, and authorizations for discharges issued by the National Environmental Authority (Asamblea Nacional, 2014). In Mexico, the National Water Commission (CONAGUA) from the Ministry of the Environment and Natural Resources is responsible for issuing permits and redistributing the proceeds from tariffs in water resources management projects, although lack of incentives and effective verification mechanisms discourage further improvements in cost recovery, particularly in rural areas (World Bank, 2022).

In rural areas, institutions offer insufficient technical assistance to service providers, who generally have limited financial, administrative and technical capacity. These limitations are associated with the large number of service providers in rural areas, their dispersion in the territory, the low institutional presence at the sub-regional and local levels, the understanding of cultural aspects within communities, among others, which suggests that technical assistance should be provided through regional schemes (Carrasco, 2011). There are few initiatives directly originating from the regulator to support providers through technical assistance or training. In Colombia, the SSPD offers technical assistance to community providers to understand the Rural Information System through training and awareness workshops at the regional level, in order to explain the new tools and encourage their understanding and use (CRA, 2022). In Peru, since 2018, SUNASS has been identifying and disseminating best practices, through regulatory benchmarking of community organizations as a performance assessment to support improvement of the quality of services (SUNASS, 2023).

In other cases, training is provided by national or subnational sectoral institutions. In Paraguay, SENASA provides training and technical, administrative and financial advice to the Sanitation Boards. This training included materials in Guarani and Spanish, adapted to the characteristics of the communities served (Perochena, 2020). In El Salvador, the National Administration of Aqueducts and Sewerage (ANDA) has created the Attention Management to Rural Systems and Communities Unit to provide training to strengthen the operation and maintenance capacity of non-state operators in the rural context (ANDA, 2018; Smits, 2012).

In Peru, the ASIR-SABA (Integral Rural Water and Sanitation) Project included the construction of Municipal Technical Assistance Offices (ATM), which play the role of articulation between the communities and the institutional framework and provide technical assistance to community providers to improve their operational and institutional performance, as well as their relationship with service users (Sánchez et al., 2023; Carrasco, 2016). In Nicaragua, a similar figure was created, called the Municipal Unit for Drinking Water and Sanitation (UMAS), which is responsible for technical assistance to the Drinking Water and Sanitation Committees (CAPS), providers of WASH services in rural areas (Vallecillo and López, 2021). In Honduras, the Water and Sanitation Management Boards (JASS) receive technical assistance from the municipalities, which are responsible for ensuring the conditions for the provision of water and sanitation services. A model called the Operation and Maintenance Technician (TOM) and the Water and Sanitation Technician (TAS) was implemented, which consists of a team of technicians from the National Autonomous Service of Aqueducts and Sewage Systems (SANAA) whose function is to support the community water boards in all aspects of the operation, administration and maintenance of the systems by providing informal training activities, advice and motivation (Smits et al., 2017).

Reporting information by rural providers to the regulator and other sectoral entities is essential to ensure monitoring of the quality of services and compliance with regulations and responsibilities to users. This information enables informed decision making, ensures better accountability among actors and greater transparency (Hantke-Domas and Jouravlev, 2011). There are several platforms created to strengthen the reporting of WASH sector information in rural areas. One of the most expanded in the region is the Rural Water and Sanitation Information System (SIASAR), a platform for monitoring the development and performance of the rural WASH sector through the collection of information in a systematic and reliable manner (SIASAR, n.d.). As of 2023, SIASAR has been implemented or is being implemented totally or partially in 11 countries in LAC (Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Honduras, Mexico, Nicaragua, Panama, Paraguay and Peru). Other countries have developed their own platforms, such as DATASS in Peru, a national information application that registers, processes and provides detailed data on WASH services in rural population centers (DATASS, n.d.). In Colombia, the SSPD has developed a Unique Rural Information System to collect information from community providers, with a series of forms adjusted to the reality of the information that can be provided by providers in rural areas, with a reduced number of indicators and help modules for an easy filling out of the requested information (SSPD, 2022).

The promotion of regionalization and associativity of small providers has shown results in terms of improving efficiency and sustainability, creating economies of scale, strengthening the representation and coordination of the provider entities with sectoral institutions, offering solutions and technical assistance to collective operational challenges (supply of inputs, technical assistance, training, preservation of the aquifer recharge zone, etc.) and exchanging knowledge (Fundación Avina/CLOCSAS, 2017; Ballestero et al., 2015). The Honduran Association of Water and Sanitation Management Boards (AHJASA), founded in the early 1990s and with more than 2,000 member boards, is the oldest in the LAC region and offers services for inputs purchase, training, technical assistance and certification of technicians (AHJASA, n.d.). The Salvadoran Association of Water Management Boards (ASSA) brings together 450 community organizations and provides assistance under the “itinerant technicians” methodology; it also organizes training sessions and offers the service of a chlorine bank that is regularly used by 25% of its members (ASSA, n.d.). There are also third-level associations, which bring together associations of providers, such as the case of the Paraguayan Federation of Associations of Sanitation Boards (FEPAJUS), with nine departmental associations and a supply center that offers products at a lower cost than the market, together with machinery and equipment available for members to rent (Fundación Avina/CLOCSAS, 2017; Mejía et al., 2016).

The participation of the users of WASH services is essential, not only in the attendance to assemblies of provider community organizations, but also in the development of infrastructure projects, in the resolution of conflicts, complaints or sanctions, in the improvement of regulatory processes (participative definition and discussion of regulations), and the awareness and training in activities related to the provision of the service, among others (Carrasco, 2011; Marín, 2011). Countries in the region have been taking steps to reinforce user participation. In Peru, the approval of the methodology for defining the family fee for WASH services in rural areas must take place in the assembly, with the participation of the users of the services. In these assemblies, the role of the users is key to understanding how the fee is calculated, what consequences the calculated value has for the functioning of the system and the impact on their health, the environment and their economy (Resolution 207 of 2010). In Costa Rica, the manual “Transparency and Accountability in the ASADAS: Manual for the Administrative Associations of Sanitary Aqueduct and Sewerage Systems (ASADAS) of Costa Rica” was issued to provide greater clarity on accountability obligations of the ASADAS towards their users, its importance and its impact on democratic systems, considering that such mechanisms favor access to information, increase trust and facilitate conditions of participation and proximity of the citizenry (Monge et al., 2013). In Honduras, ERSAPS requests that all service provision’s processes include wide citizen participation. In this context, ERSAPS has created two local bodies: the Municipal Commission for Water and Sanitation (COMAS), responsible for planning and co-ordination, and the Supervision and Local Control Unit (USCL), a citizen participation body in charge of service provision control and users’ reclamations (Akhmouch, 2012; ERSAPS, 2006).

Regarding gender and intercultural aspects, beyond some basic aspects of gender quotas in some bodies, there is no sufficient regulation on how to address properly these issues in rural areas. As an example, in Perú, the regulatory benchmarking of community organizations assessed women’s participation, showing that 41.6% of workshop participants were women and 16.5% of community organization participants are led by women (SUNASS, 2023), but does not offer further information. However, there are initiatives promoted by various stakeholders which work towards greater inclusiveness and could inspire adequate and targeted regulation in these regards. In Paraguay, with an indigenous population of more than 115,000 people, the Paraguayan Indigenous Institute promotes policies and regulations for the effective design and implementation of plans, programs and projects for their good living in an articulated and participatory manner, in including access to WASH services in indigenous communities. In Nicaragua, initiatives such as PARAGUA have been developed, focused on comprehensively and systematically addressing gender inequalities in rural water management, including the regulation of services and the development of the School for Women Leaders as a training experience for women on boards of directors (Murguialday, 2017). In Mexico, the Mexican Institute of Water Technology has developed a series of workshops in communities to promote gender analysis and women participation in integrated water management and policy. These workshops seek to contribute to the proposals for public policy advocacy, laws, regulations as well as participatory mechanisms to promote a greater role for women, as well as gender equity (Akhmouch, 2012).

The responsible behavior of WASH service users is essential for the conservation of water sources, as well as for the sustainable use of resources, maintenance of systems, payment of tariffs, appropriation of service management processes, among others (Vivanco et al., 2022). Some countries across the region are gradually raising awareness among provider organizations and users, as well as among local and national institutions. As an example, in Colombia, the SSPD organizes on-site meetings with community operators and users in rural municipalities, with the aim of promoting behavioral changes such as payment of tariffs, water consumption responsibility, or formalization of service providers (SSPD, n.d.). In addition, the CRA has online courses and guidance materials to raise awareness of the regulation and promote these changes in the population. However, these efforts are incipient and there are no mechanisms to evaluate the impact of these initiatives (CRA, n.d.).