 A P3, as defined by the Environmental Financial Advisory Board, is a contractual, institutional, or other relationship between government and a private sector entity that results in sharing of duties, risks, and rewards of providing a service in which the government has an interest, recognizing that the government retains ultimate responsibility for insuring that social needs and objectives are met.P3s are sought by states and local governments as a way to reduce the financial burden of water pollution and infrastructure needs.It has been estimated that, of the costly capital improvements, upgrades, expansions, and new compliance requirements imposed on water and wastewater utilities, local governments bear 95% of the costs.