They may be used to convey the message that water is valuable and can assist in motivating people to reduce water use. Increased water service charges also recovers costs. Price is assumed to change consumer behaviour, when in reality a variety of factors influence behaviour. The approach taken to pricing is as important as the price. Availability of an inexpensive source of water is linked to economic development such as large industries and agriculture.
Some water uses, particularly indoor residential use, are relatively price-inelastic.
An emotional response to rising water prices often clouds issues. These tools include structural or physical improvements and installation of water use efficient devices or processes. Effective water-pricing structures rely on a metered system. Communication and Education Tools Communication and education tools are utilized to encourage voluntary water conservation actions and to support other tools. Communication and education is based on an assumption that action is influenced by awareness and understanding.