Decade-long waits for drinking water in Nepal’s capital city: urban household’s willingness to pay for improved water services

Nepal experiences acute water scarcity, with low regional water security. This study evaluates household demand for improved piped water in the Kathmandu Valley using contingent valuation and difference-in-differences analysis. Despite the Melamchi Water Supply Project expanding coverage, mean willingness to pay (WTP) fell by 23%. Critically, WTP did not differ significantly between households with or without project access, demonstrating that infrastructure alone fails to raise valuation without perceived reliability and quality. Tobit regression identifies household income and family size as key positive predictors. These findings underscore that sustainable water supply requires policy to shift beyond mere access, prioritizing investments in consistent service, water quality, and hygiene to rebuild consumer confidence and guide effective governance.