As already mentioned above, the attempt to create a cost covering water price might lead to equity problems. As man needs a certain volume of water for sheer survival, the increase of water prices above a certain level can mean severe hardship for the less well-off. Nonetheless a really adequate pricing policy can solve these possible problems, as it will combine the achievement of environmental objectives with an increase in social equity. Regional differences in the water price due to the internalisation of environmental externalities represent another inequality. Thus equity can be affected by Full Cost Recovery pricing, but this is not really a problem of the principle itself but more of the way of its implementation.

Another possible negative effect of water pricing on society is, that as water prices rise, certain enterprises (industrial as well as agricultural) especially smaller ones might face profitability problems. While bigger firms can even out losses by installing technology to save water or avoid polluting effluents. Especially in the agricultural sector this can cause high losses to society as smaller farms are often family owned which gives them considerable social value.

Even if jobs would be lost due to profitability problems as described above, the rising demand for water saving technology will drive innovation and the creation of new jobs. This might not be an immediate solution for rural areas. In the long run it might solve the problem though.

Furthermore the social costs accruing generally from end-of pipe solutions for pollution problems have to be considered. The investment necessary for the construction of waste water treatment plants and canalisation burdens society with costs that could be reduced if pollution would be met at the source.