Residential Water Demand in Saskatchewan Communities: Role Played by Block Pricing System in Water Conservation

Water demand characteristics of households in various-sized communities are estimated in this study using cross-section data for 50 communities located in southwestern Saskatchewan. Communities differed with respect to frequency of billing, as well as pricing structure; increasing block, decreasing block or uniform rate (flat rate, no charge). Seasonality of water demand was also identified. Response of consumers to a price change was less for those billed on a quarterly or tri-annual basis than for those who were billed on a monthly or annual basis. Results also suggest that an institution of increasing block pricing system would result in a decrease in water demand by 10 percent, and therefore, should be worthy of consideration as a potential measure for water conservation.