Determinants of Quality and Quantity Values of Water for Domestic Uses in the Steelpoort Sub-basin: a Contingent Valuation Approach

The value that domestic users attribute to reliability of water supply and to the quality of this water is a function of several determinants, such as the source of water, the socioeconomic characteristics of households (per capita income, level of education, etc.), and other variables. Users that have private tap water at home may value less improved availability or more reliable source than households for which the only source of water is the closest river or a borehole. On the other hand, users connected to regular potable water supply are more interested in quality improvements compared to those who fetch water from surface source. This study analysed and measured the influence of such factors on domestic user’s perception of the value of reliability and quality of water supply in rural and urban areas of the Steelpoort sub basin of South Africa. A stated preferences method (the Contingent Valuation Method CVM) was adopted to quantify and analyse the relationship between willingness to pay (WTP) for improved availability and quality of water and such factors. Although WTP is not a measure of water price, and therefore cannot be used to construct water demand functions, the results of these analyses have important policy implications. The results inform decision-makers of the relative contribution of different socio-economic and spatial factors to the value of water. This study draws important lessons for the water demand management and allocation at catchment level.