Inequality and transaction costs in a community-based water supply in rural area adjacent to national park

National parks can be sensitive state-property areas since the surrounding communities generally need parks' resources for their livelihood. This paper focuses on inequality and transaction costs in PAMSIMAS (Community-Based Water Supply Sanitation), a water sector program Indonesia’s rural peri-urban areas. The method used is case study of Tajuk, village adjacent to Mount Merbabu Park Semarang Regency, Central Java. data were gathered from documentary studies, in-depth interviews, observations, analyzed using cost economics institutional analysis. found that rules PAMSIMAS, especially pricing mechanisms, enhanced availability but could not diminish uncertainty access born by users. Inequalities endowment, power, information among hamlets affected how was run. Mobilization related property rights, which should well-defined. Still, there an overlapping institution forest its resources; thus, user groups had bear different costs. provides suggestions providing broader 'rules game' management, recognizing local conditions prospects, acknowledging community rights resources, developing inclusive participation.JEL Classification D23; P48; Q15