To complement the lean structure, professionals based in different parts of the country have been engaged by NWASCO as inspectors on a part-time basis to monitor water supply and sanitation service provision in the areas where they live. Like the full time inspectors, the selection and recruitment process of the PTIs is competitive. Before being assigned responsibilities, they undergo intensive induction and training on NWASCO processes, procedures and culture. Part time inspectors (PTIs) are effective in monitoring service provision because they are a part of the communities serviced by the monitored CU and hence are able to attend to issues promptly and giving quick feedback to Head Office on what is obtaining on the ground.

Providers whose performance is deteriorating beyond acceptable limits may be placed on Special Regulatory Supervision (SRS). This deterioration might be in form of non-adherence to licence conditions and Service Level Guarantees (SLGs).  SRS is an enforcement tool used to curb negative performance trends. It is effected in form of an agreement signed between NWASCO and the provider in which it is stipulated that during the period of the SRS, NWASCO shall closely monitor all operations of the provider including decisions being made by both management and the Board. This means that NWASCO can attend Board meetings to monitor internal decisions. Although intrusive, such regulation enables a provider to quickly undertake remedial measures. Under SRS, the provider draws up a plan on how to improve its performance over the period of the SRS and submits monthly reports indicating the progress being made in meeting the planned activities. This is a stop gap measure to avoid the worst case scenario of suspension/cancellation of an operating license.

Since inception, NWASCO has been employing command and control regulation. Though sector performance has improved, this is at a slower rate than desired. To stimulate higher performance among the CUs, in 2008, NWASCO advanced its regulatory regime by introducing incentive regulation. The Regulation by Incentives (RBI) Programme uses incentives to induce high performance and innovation in the CUs by rewarding good performance thereby inducing efficiency gains.