The City of Atlanta's water, wastewater, and sewer systems must comply with increasingly stringent environmental requirements while providing City users with high-quality service. With the need to implement its major capital improvement program (CIP) immediately to accomplish these twin objectives, the City was faced with two choices to pay those costs: either continually raise user rates to meet operations and debt service requirements, or find savings in existing operations to offset rising costs. After having recently raised water and wastewater rates, the City decided to assess the potential to reduce operations costs. To help evaluate its options for cost savings, the City retained a team of consultants to perform a phased operations assessment. Based on the winning bid, the City will save more than $20 million per year in operating the water system, which totals to $400 million over a 20-year term. Because of the resounding success of this procurement and the comprehensive and open nature of the process, it is expected to become a model for the water industry.