Water is increasingly becoming a scarcer commodity, particularly in large cities of developing countries. Drinking water is an important use of water which has been catered for by most of the local governments. However, it is provided with a varying degree of reliability and the cost of this is not known. Consumers would like to pay for a reliable water supply besides what they pay for the normal water supply (both quantity and quality of water supplied). This paper presents an application of the contingent valuation method (CVM) for estimating the value of reliable water supply in National Capital Territory (NCT) – Delhi. The study implications and the lessons accruing from it are also summarized.

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