Changing the behaviour of water users towards more sustainable practices is a necessary step in achieving water security. One way to promote such change is through economic instruments. Economic incentives involve the use of prices and other market-based measures to improve the way water is managed and used. They provide incentives to water users to use water carefully, efficiently, and in a manner consistent with the public interest. They have both positive and negative effects, rewarding users that recognise the true value of water and penalising profligate and anti-social use.
Institutions responsible for delivering such services can be public, private, or cooperatively owned and manged entities but can also result from collaborations between these sectors. Service providers are responsible for establishing, maintaining, and upgrading the water supply system, which typically involves for: collection, treatment, distribution, quality control, sewage, and reuse of water. IWRM principles stipulate that water should be provided in adequate, quality, and affordable supplies. An integrated strategy also presupposes that water services should be tailored according to the social, economic, and environmental contexts.
