Abstract
Drought in the Western U.S. has elevated the need for innovative water pricing. We describe two utilities whose novel pricing structures reflect water availability and reasonable use expectations. One has a physical basis of water rights, landscape water needs, and irrigated area; the other has a hydrologic basis of an annual water supply forecast. Both utilities charge users tiered (increasing block) rates for an adjustable water allotment. The rates have proved hydrologically beneficial, socially equitable, and financially sustainable during the drought, suggesting that water pricing can be an effective policy tool for responsive water management.
Published Version
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