Setting water rates
Cities that have increased prices in water, generally use the increased rate to improve infrastructure. Families generally pay a fixed charge every month which is independent of water consumption, and a variable charge which is related to the amount of water used. Higher fixed charges are more commonly used to ensure revenue stability due to increased pipe repair costs, however, it reduces the incentive to conserve water and may punish households that use less water.
Water prices worldwide
Water prices vary across the countries and cities due to the various processes that are used to assign a price. Utilities generally set a water rate or tariff based on costs of water treatment, water storage, transport, wastewater treatment and collection, and other administrative operations. On the other hand, direct abstraction of water from sources such as lakes, is usually not charged, however, some countries require payment based on volume or abstraction rights.