A Handbook for Socio-Economic Analysis and Management of Water Supply Facilities – Volume 3 provides guidance on ensuring the financial and economic sustainability of water supply systems, particularly in rural areas. It explains how to estimate the full cost of services, including capital investment, operation, maintenance, and depreciation. The handbook emphasizes that users pay for water services—not the water itself—highlighting the importance of fair and transparent tariff structures. It outlines approaches to cost recovery that balance financial viability with social equity, especially for low-income households. The volume also distinguishes between domestic and commercial water uses, supporting differentiated pricing strategies. Overall, it underscores the need for accurate cost analysis and sound financial management to ensure reliable, long-term water service delivery and to prevent system failure due to underfunding or poor planning.
