ABSTRACT
This chapter highlights some aspects of water markets in metropolitan cities with a case of Madras, India. It analyses the need for developing methods and instruments to understand the distribution and equity aspects of water supply plans and projects. Accounts of water supply sector predominantly reflect the “formal” or “documented” view of the system, based on information readily available. According to the water balance sheet, Madras consumes over 600.1 million litres of water per day or roughly 111 litres per capita per day. In conditions of scarcity, a water market reflects an oligopolistic structure with scope for super-normal profits. The foregoing discussion indicates the various dimensions of the water supply problem in Madras needing to be addressed by policy. A basic service such as water supply, something taken for granted in the western world, can be a complex issue in any city in the developing world.
