The no campaign argued that private participation in the water sector was necessary to drive efficiency and provide much-needed investment. By restricting the return on capital, the referendum limits opportunities for water utilities (public and private) to raise capital for investment in capital markets. The plans of a number of privately operated utilities to upgrade parts of Italy’s water network have been shelved. Some public utilities may be able to resort - in the short term - to taxation to repay loans, but this option is not available to private operators, including utilities jointly operated by the public and private sector.