Mixed public-private enterprises in Europe, like Italian water utilities, are becoming more common. These entities are jointly owned by the public and private sector. The main goal of this economic analysis is to show that this type of ownership structure can lead to better performance and less risk of private companies taking advantage. By having the public sector as a controller and the private sector as a service provider, mixed enterprises can improve efficiency and quality. This setup allows for better information sharing and monitoring, leading to more effective regulation. The board of directors of these mixed enterprises can help resolve conflicts between public and private interests. Overall, this study suggests that mixed ownership can be a good alternative to traditional public provision or fully private ownership in local utilities.