ABSTRACT
Throughout the world, water prices reflect local laws and institutions for water delivery. Some places, such as Israel, manage and price water in a largely centralized way, others, such as Arizona, approach management and pricing in a more decentralized manner. This chapter reviews water management and regulation in Israel, presents basic theoretical elements, and surveys the practice of water pricing in Israel. The discussion points out the challenges associated with pricing water to reflect its scarcity in these growing, water-short regions.
