The Moody’s water management ratings, published in June, place India in the highest water-risk category. With 18 per cent of the world population, India has access to only about 4 per cent of global freshwater resources. In 2024, the Ministry of Jal Shakti announced that India’s per capita freshwater availability is shrinking over the decades. Urban demand, driven by population growth, commercial expansion, and changing lifestyles, continues to outpace supply. Yet one of the most powerful levers for influencing water reuse sits neglected: The water tariff. The low price of water in Indian cities is disconnected from the true cost of supply. At the Centre for Sustainable Development, with the Pune International Centre and Pune Knowledge Cluster, we studied the economics of urban water. The Jal Mulya project delved into the costs and prices of urban water supply and examined consumers’ willingness to pay for assured quality of drinking water. The results emphasise the role of tariffs in regulating water use.

Consider this paradox: Grey water, or domestic wastewater from washing, bathing, and kitchen use, can be treated and reused for toilet flushing, construction, gardening and other non-potable applications.........

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