Reshaping government at the local level in Cambodia: with an example of urban water supply in Battambang

The transition from communism to a market economy poses many important questions concerning the appropriate role for the state, and the institutional capacity for service delivery and development. Cambodia, after the turmoil of the Khmer Rouge and a decade of Vietnamese‐guided communism, has opted for a market economy. This article considers some of the problems facing the Cambodian government following the UN‐backed elections. It outlines the system of government at national and local level, focusing on Battambang province and district. It considers the current debate there about centralization and decentralization, and examines the problems of finance at national and local levels. The case study on water supplies in Battambang town contrasts the public provision through the provincial water enterprise with private sector and community/NGO provision. Whilst there is an urgent need to increase water supply capacity and improve quality, there are institutional constraints in relation to the various providers. The development of the capacity of the local government to manage service delivery will be crucial. © 1996 by John Wiley & Sons, Ltd.