Universal access to safe water remains a critical challenge in the Global South. This study examines households’ willingness to pay (WTP) for improved water services in the secondary town of Leku Town, Ethiopia, identifying key socioeconomic, demographic, and institutional determinants. Using a cross-sectional contingent valuation survey with stratified random sampling of 193 households and binary logistic regression analysis, it is found that 68.9% of households were willing to pay for improvements. Household income was the strongest positive predictor (Adjusted Odds Ratio, AOR = 7.49, p < 0.001). Crucially, institutional factors demonstrated profound negative effects. A negative attitude toward the water provider (AOR = 0.19, p < 0.05) and dissatisfaction with service timing (AOR = 0.17, p < 0.01) each reduced WTP odds by over 80%. Female respondents showed significantly higher WTP than males (AOR = 2.08 for females, p < 0.05). The findings demonstrate that WTP depends not only on economic capacity but critically on institutional trust. The study concludes that securing sustainable financing requires both pro-poor pricing and targeted strategies to rebuild institutional credibility. This paper recommends implementing pro-poor tariff structures, executing visible service improvements to rebuild trust, fostering transparent communication, and ensuring inclusive community engagement, particularly of women, to secure sustainable water service financing.
wogene Markos Dumo (Wed,) studied this question.
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