Water tariff setting and challenges for meeting water coverage target of millennium development goals in Ghana

Ghana is pursuing strategic plans towards the achievement of water coverage targets set under the UN Millennium Development Goals by year 2015. About 75% of the population is expected to have access to potable water supply for domestic use. One of the key factors that may derail the achievements of this target in rural communities and small towns is high water tariff. Water tariff setting is achieved under two different legislations. Whereas the Public Utility Regulations Commission and Ghana Water Company Limited regulates water tariff for urban communities, the Community Water and Sanitation Agency facilitates water tariff setting for rural communities and small towns. The level of water tariff is related to the level of patronage of water facilities, especially in rural communities. It is therefore a critical factor to be considered when planning towards achievements of water coverage targets for the MDGs.