Hello David,I am very happy ...

Hello David, I am very happy that you have created this particular group on Water Finance and greatly look forward to engaging in discussions. I greatly look forward to learning about your experiences (and those of others) with various pricing structures across the world both in developing and developed economies and what works and what does not. I believe that if we begin to understand the value of water and price it appropriately, there will be increased investments in infrastructure financing and sustainable access to all can eventually become a reality. The most important factor is that cost structures must reflect not only the cost but also the externalities associated with running and maintaining water systems. Reinvestment into municipalities is a must along with creative financing structures that ensure a minimum allowance for those who cannot afford and a higher tariff for those who consume more and are on the higher end of the tariff scale. For poorer communities where funds are lacking, community involvement is crucial, as a sense of ownership by the community attributes to a more efficient and cost-effective system. A good example of good water pricing with community involvement is in Porte Alegre, Brazil. Here, an independent municipality provides a social rate (subsidized by the larger consumers) to the poor. The entire process is very transparent and involves the poor participating in the decisions of the municipality, and then any profits are re-invested in order to expand the network. Look forward to learning of other innovative pricing schemes for water management. Thank you!