WATER MARKETS

There are many different kinds of water 'market'. Children in Nairobi slums sell 20 litre cans off wheeled trolleys, the farmers of Northern California sell water rights to the thirsty South, and the governments of Turkey and Israel negotiate regarding the transport of bulk water from the Manavgat River to Haifa.

What these situations have in common, as a minimum, is that vendors and buyers have to agree on a price for the sale to take place. This, in turn, means is that the buyers have to think very hard about what the water is worth, to them. Very little of the water involved in this sort of transaction ends up being wasted.

The increasing practice of pricing urban water supplies has been widely criticized as a tool of the 'Capitalist Globalization Conspiracy', with inevitable negative effect on the poor. It should not be seen that way. Many countries around the world, from South Africa to South America, have shown that tariff structures are available that allow the first 25 to 30 litres per person per day to be free to all consumers. As this is more than sufficient for domestic use in most poor households, they can in effect receive free water. It is the larger and more affluent households, with many bathrooms, large lawns, and the multiple expensive cars to wash, that must in future pay the piper !