Challenges of recycled water pricing

Recycled water has posed new challenges for conventional water supply and wastewater provision models, as it interconnects different related services. The reclaimed water sector faces the arduous task of setting specific pricing policies since rules for potable water and wastewater charges may not be appropriate for it. This article addresses a review of current challenges in pricing policies for recycled water based on case studies available worldwide, highlighting the most common tariff structures in use and the principles applied, providing a guideline for recycled water pricing based on the barriers, drivers, and practices found around the global experiences and academic literature. The results show that different tariff structures are adopted based on local socioeconomic factors and water authorities' objectives. We conclude that the local environmental conditions, the institutional arrangement, technical and economic specificities are influence factors that decision-makers should consider when setting recycled water charges.