They cover only a small part of the costs of supplying water. The fact that this money is not currently available is further evidence that water revenues do not cover costs. Provincial and municipal officials set water prices in Canada. Most provinces levy licence fees to major water users for access to the resource. The provincial licence fees for water are not set in accordance with any pricing principles, but rather are related to the cost of administering the licensing program.
Municipalities also levy charges to water users.
In many areas, users are charged a flat monthly, quarterly, or annual rate in exchange for access to unlimited amounts of treated water. In other places, the charges are based on the volume of water used, as measured by a water meter. Irrigation water fees are paid according to land area irrigated, not water volume used. It is expected that the price of water will increase in the future to bridge the gap between the cost of providing water to the user and the revenue received from those using it. As with most resources, the amount of water used decreases as prices rise.