Abstract
This paper estimates technical efficiency of industrial water in order to afford some information for improving the efficiency of government water management policy. To estimate technical efficiency, this paper uses data envelopment analysis. The result shows that the average pure technical efficiency of industrial water is 0.407. This estimate is less than the estimates when all inputs are considered as variables in the previous researches. This result means that the managers may have not tried to improve the efficiency of industrial water usage since the cost for industrial water is trivial compared to other inputs. In addition, this result shows that the previous researches which assume that all inputs are used in efficient way may give a biased results.
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