Pricing of Rural Drinking Water: A Study of Willingness and Ability to Pay in Western India

V Ratna Reddy

Journal of Social and Economic Development, 1999, vol. 2, issue 1, 106-127

Abstract: This paper, while analysing various aspects of water use. estimates the household's willingness and ability to pay for drinking water in rural areas for formulating price policies. It questions the validity of the 5 per cent thumb rule for formulating blanket price policies. The study also vindicates the hypothess that rural people are aware of the link between health and improved water supplies. It is argued that public policy needs to be geared to meet the future demand for improved water supplies. Households can afford to pay for water on supply cost basis provided water supplies are assured in terms of quality, quantity and regularity. Hence, cost recovery is not a major problem in the study region.

Date: 1999
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