Household affordability and willingness to pay for water

Generally, urban water supply provisions are often constructed without consultation with the community concerned through assessing their affordability or ability to pay (ATP) and willingness to pay (WTP). This is evident in the water supply system of the study areas for the BTC-funded project towns in Champhone and Laongam. The utilities were unable to set appropriate water tariffs that were consistent with ATP and WTP. This study investigated and assessed those criteria and compared them to monthly household income. The ATP for connection is about 51.7% in Champhone and 70.2% in Laongam and monthly water charge is 2.3% and 4.8% of average household income respectively. The WTP for connection is about 38.0% and 75.7% with a water charge of 1.5% and 2.4% respectively. Overall, the WTP for monthly water charges is less than ATP and is less than the amount that is generally assumed (3 - 5% of income).