ABSTRACT
To sustain increasing urban water demands different strategies are common, such as a combination of long-distance water transfer and advanced wastewater treatment for reuse. In this chapter, two business models (inter-sectoral water exchange and cities as their own downstream user) are presented which use a different approach of exchanging wastewater and freshwater, based on rural-urban water trading. Water exchange is driven by social and economic values. Water for drinking has much high social value than for agriculture, yet the quantities involved are smaller. The rapid growth in urban population in countries like India is putting immense pressure on urban water supply and wastewater management. This has led to large-scale water transaction between urban and peri-urban areas. Common related challenges in developing countries are weak institutional linkages for integrated surface and groundwater management across rural-urban borders, as well as missing regulations and monitoring of water quality.
