These policies resulted in a substantial reduction in average water use. However, an unwanted consequence of reduced water use for metered systems was reduced revenues to the agencies, which still must pay their fixed costs plus the costs of expanded conservation programs. Hence, to remain solvent many water agencies had to increase retail water prices several times. The policies adopted by the various water agencies will also significantly affect the retail prices charged to consumers. Some agencies use water prices to fully recover the costs of acquiring and delivering supplies, whereas others use a combination of water prices and local property taxes.
Policies concerning the use of meters and rate structure are also important.
Typically, the costs to consumers of using unmetered supplies are less than if those same supplies were metered. With metered water, customers pay for all water used. In contrast, unmetered water customers pay a flat rate regardless of quantities. Where supplies are metered, rate structure becomes important. These rates encourage water conservation.