Over the last couple of years, media and researchers have raised concerns about the monopoly in supply of urban water. For example, Sydney Water has a monopoly of urban water supply households in Greater Sydney. Answer the following questions after doing some research on this topic, including reading the following articles:

Sibly, H., & Tooth, R. (2008). Bringing competition to urban water supply. Australian Journal of Agricultural and Resource Economics, 52(3), 217-233

Coombes, P. (2017, January 18). Why the water supply needs a splash of competition. Australian Financial Review.https://www.afr.com/companies/infrastructure/why-the-water-supply-needs-a-splash-of-competition-20170118-gtts9u

1. Outline and describe the reasons why Sydney Water has a monopoly for delivering urban water to households in the Greater Sydney region.
2. If other organizations were allowed to supply urban water, how would this impact the price and quantity of water used by Greater Sydney residents?
3. Based on your research, what is required to ensure that any privatization of urban water supply does not lead to deterioration of community welfare?