Pricing Water Resources and Water and Sanitation Services

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In both OECD and non-OECD countries the water sector is facing the challenges of increased competition for water resources, deteriorating water quality, and the effects of climate change and poor management. In this context, how can countries ensure access to adequate, sustainable and affordable water and sanitation services for all?  

Pricing water-related services is an essential part of the answer. This report compiles reliable and comparable data on pricing water and on water supply and sanitation services across OECD countries. It sheds additional light on such policy issues as the choice of tariff structures for water services, cost recovery for water services and affordability.

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Policy challenges related to water pricing

This chapter focuses on two objectives of pricing for water supply and sanitation services: the financial sustainability of services, and the affordability of water bills. It shares data on cost-coverage ratio for domestic water supply and sanitation services and on the share of disposable income allocated to water bills in OECD countries. Data indicate that affordability can be an issue for segments of the population.

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