Introduction

The Water Resources Management Policy of Ethiopia recognises that water is a vital socio-economic resource (MoWR, 1999). It also states that the cost of providing water services should be recovered from the people using it. However, when considering the price to be paid for water, the national policy states that ‘the price of water should be neither too high (and discourage water use) nor too low (and encourage abuses and over-use of water)’. It also acknowledges that different approaches are needed for rural and urban dwellers.

In this study session you explore how cost recovery can be achieved, including billing and smart meters. You will also look at how small loans can help to improve water supply.