Abstract
This article estimates the benefits of potable water quality improvements in Kajang Municipality in the state of Selangor, Malaysia, using the avertive cost method. Households were willing to pay MYR 322 annually to improve potable water quality. This represents about 80% of their average annual water bill. The present value of aggregate benefits over a period of 30 years at various social discount rates ranged from MYR 301 million to MYR 768 million. These estimates can be used as a reference for public investment criteria. The findings suggest that there is merit in an upward revision of water tariffs if they provide improvements in water quality.
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