Special districts are an increasingly important part of the local government equation in the United States, representing over forty percent of local governments. The spread of these governments is controversial, however, as some argue that they will have a negative impact on service delivery, due to a perceived lack of political accountability. Others argue that their focus on single policy issues allow them to more efficiently respond to the citizens they serve. Despite the controversy, only a few studies have quantitatively investigated the differences in service delivery between special district and general purpose governments. Building on Mullin's earlier work, in this research note we investigate the relationship between specialized local government and water utility rates. We find little direct difference between special districts and general-purpose governments, with some minimal support for a conditional relationship between special districts and scarcity.
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