This study from Kenya shows why squatters don't get adequate water. Only 5 percent of the people getting municipal water service are poor. The bulk of the poor must buy their water from private kiosks. And check this out: "Kiosks receive water from the public utility at a subsidised price of US$ 0.15 per cubic meter but charge their customers, on average, 18 times that price."
Hmmmm. Sounds like when water is made a profit center, you get high prices and controlled scarcity.
The Kenyan government could do more for the poor by piping their neighborhoods for water than all the rebuilding plans currently on the drawing boards.