Understanding Water Affordability in the United States

Abstract

Access and affordability to clean water in households are primarily considered third world issues – which is why there seems to be limited research on water affordability focused on the first world. However, rising water prices over time have become a growing concern even in the developed world, especially for the low-income population. Therefore, this paper takes a deep dive into the literature available on water affordability in the United States to explain what water affordability means; the equity and efficiency concerns around it; how it is measured; the critiques to the standard affordability threshold being used; the possible alternative criteria that can be considered instead; and the policy responses to the current water affordability challenges. The analysis presented indicates the need to understand water affordability from an equity standpoint, though it does not suggest a decrease in prices across the board or making water services free. This research can serve as a baseline for future studies related to water affordability within different regions in the United States and other developed countries.