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An average U.S. family of four pays about U.S. dollars for water every month as of 2019, if each person used about 100 gallons per day. The price index of water and sewage maintenance have increased in recent years as infrastructure continues to age across the United States.

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.