Abstract

To date, there have been relatively few studies of small-scale providers of water in developing countries, though they are seen to be important players in peri-urban water supply systems. This paper uses the case of small-scale providers in Can Tho, Vietnam, to examine competition in local water markets, and how piped water compares with a range of lower-quality traditional sources. Although previous studies have usefully employed contingent valuation to estimate the demand for low quality, the evidence provided here estimates demand based on actual household choices regarding water of differing qualities and prices. Using an original household survey, the paper assesses the comparative advantages regarding costs, uses, and perceived advantages/challenges of each source. Findings suggest that household demand for piped water exists, but not on a sufficient scale to obviate more traditional sources, even though it is surprisingly affordable when compared to what residents pay for natural sources. Findings also suggest that the main perceived advantage of the piped system is not for its hygienic quality, but for aesthetic characteristics such as taste, smell, and color. Scholars might continue to pursue research in situations where households are not limited in their ability to choose water sources of varying qualities.

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