The Economics of Canadian Municipal Water Supply : Applying the User-Pay Principle (Chapter 12)

The purpose of this chapter is to examine the user-pay principle as it applies to the municipal water industry in Canada. The user-pay principle requires that users pay the full economic costs of the goods and services they consume. Equity, efficiency, and water conservation are promoted by the application of the user-pay principle. This chapter compares current Canadian practices with those required by the user-pay principle. Recommendations are made with regard to the changes in Canadian practices that are required to bring the Canadian municipal water industry up to the standards required by the user-pay principle. In addition, recommendations are directed to the most appropriate means to attain the user-pay principle in Canada