Most cities and towns in Australia and many other places around the world are facing severe water shortages. One demand management approach that has been popular among policy makers over the years is pricing the w

| December 7, 2018

Most cities and towns in Australia and many other places around the world are facing severe water shortages. One demand management approach that has been popular among policy makers over the years is pricing the water. Using the price mechanism can help ensure that the water is allocated to its best uses and the price of water reflects its full cost.
The table below sets out hypothetical data on total demand and supply of water for residential consumption in a typical city:

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