Understanding potable water supply costs, pricing, tariffs and cost recovery in low income and developing countries: A comprehensive synthesis

Abstract

Potable water supply involves costs and the recovery of these costs is important for the provision of adequate services and the sustainability of water supply systems. User fees through tariffs constitute an important source of cost recovery, thus the pricing of water services is a key issue in the provision of potable water. This paper, based on a literature review, provides a comprehensive synthesis of water pricing, water tariffs and cost recovery with the aim of providing a single concise, yet comprehensive piece that demonstrates the connectivity of the three. The paper discusses the costs involved in potable water supply, water pricing, some common types of applicable water tariffs, cost recovery, and some strategies to improve cost recovery through tariffs. Key words: Potable water supply, water pricing, water tariffs, cost recovery, water system sustainability.