This article discusses the principles for the administering of fair and equitable wages and salaries for water utility employees. The article presents the City Water Board of San Antonio, Texas, as an example of following procedures for systematically evaluating the relative value of one position to another in the organization. Job analysis, grades and wage classes, and salaries are discussed, along with two key changes that were made at San Antonio: eliminating predetermined anniversary dates existing in the old salary schedule and placing the responsibility for recommending salary adjustment on supervisors and managers; and, eliminating predetermined amounts of increases and making supervisors and managers responsible for recommending varying amounts in relation to employee performance.