AbstractIn light of the growing interest and potential of the Life Satisfaction Approach (LSA) to value environmental attributes, this research paper aims to estimate the monetary value of water supply infrastructure improvements using this novel approach. A theoretical framework compares this method with the widely used contingent valuation method (CVM), highlighting the pros and cons of both approaches. Results show that the LSA can generate meaningful values of the nonmarket benefits derived from improving water supply infrastructure, based on the impact that such benefits can have on individuals’ life satisfaction. In addition, these values are not different from those obtained from the CVM. Thus the LSA arises as a useful complement to the more traditional methods while expanding the array of techniques available for the economic valuation of environmental goods in a cost benefit framework.