Toward Equitable and Sustainable Rural Water Supplies: A Contingent Valuation Study in Brazil

Because many rural people are poor, it is usually assumed that rural water supplies must be financed by government agencies. It is now widely recognized, however, that many rural people can and will pay for improved water supplies, and that sustaining and extending services depends on mobilizing this willingness to pay. This article describes a study of willingness to pay for water in Brazil. The study shows that surveys of actual and hypothetical water-use practices can provide policy-relevant information on willingness to pay, which is shown to vary according to household socioeconomic characteristics and the characteristics of the existing and new supplies of water. In rural Brazil, tariffs for yard taps can be increased substantially before significant numbers of households would choose not to connect to an improved system, whereas provision of free water at public taps can protect the poor without jeopardizing the financial viability of the scheme.