The regional water authorities are empowered to set and collect water tariffs for domestic and agricultural use. Subscription fees for domestic water supply vary among the water boards. During the year 2001, tariffs ranged from US$ 44 per year to US$ 153 per year for a 1 m³/day gauge subscription. Differences are partly due to water availability and distribution costs as gravity distribution is cheapest, while distribution by pumping is far more expensive. In Beirut and the Metn area, where water tariffs are highest, water is conveyed long distances and/or pumped from deep wells. In Bsharre and Dinniyeh, where water tariffs are lowest, water is available from springs and delivered by gravity.

Most households incur additional expenses to meet their water consumption. Assuming households with a 1 m³/day gauge subscription actually receive and consume this amount of water per day; such households would be paying the equivalent of US$ 0.12-0.42 per m³ of water. In fact, most households end up paying much more on a per cubic meter basis for two main reasons:

• Frequent and periodic water shortages (some areas report receiving water only a few hours per day) and

• Need to buy water from private haulers, at costs typically around US$ 5-10 per m³.

As long as water meters are not installed, the price of water will remain unaffected by actual water consumption and people will pay the same amount regardless of the quantity of water actually delivered/ consumed. Users have no incentives to conserve water and wastage is much more common.