The Korea Local Administration Review

This study has established a research question of "out of the local water supply system and the internal production system, which production method would make it possible to produce regional water supplied with much less expense?" from the perspective of a local autonomous entity, and conducted empirical analysis.
This study first has conducted empirical analysis by using technical statistics analysis and approaching this matter from the perspectives of differences in production costs that differ according to the production method. It secondly has analyzed how the operating costs of each autonomous entity change according to a change in rates of internal purification by using penal data. According to the results of empirical analysis, rather than the method that the internal purification method provides in purchasing the metropolitan water supplies, all of the two analysis methods have positively contributed to a decrease of costs.