Technical guides

Principles of Water Rates, Fees and Charges

This official American Water Works Association Manual of Water Supply Practices will help water policymakers, utility managers, and rate analysts consider all relevant factors. The updated 7th Edition features significant changes, including updated information on treatment of fixed charges and declining revenue and the growing issue of affordability. This addition also includes new chapters on water reuse and emerging trends.

"Water rates developed using the methodologies discussed in this manual, when appropriately applied, are generally considered to be fair and equitable because these rate-setting methodologies result in cost-based rates that generate revenue from each class of customer in proportion to the cost to serve each class of customer." Objectives in establishing cost-based rates include recovery of the full revenue requirement in a fair and equitable manner as well as incentivizing efficient resource use, i.e., conservation and efficient use and revenue and rate stability.

To access this valuable AWWA manual click the link below.


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