Water and the Circular Economy
Project Round
Project Number
313 - 002
Research Organisation
ACIL Tasman Pty Ltd

Pricing for Water Conservation in The Non-Residential Sector

In relation to water conservation, much of the water industry’s focus has been on providing the domestic sector with various incentives to conserve water – including the introduction of a three-tier increasing block tariff.

Project Overview

Initiatives specific to the non-residential sector have been limited to the provision of water audits for major consumers, education programs and programs for looking at the water efficient practices of local councils and open space management through various partnerships.

Given the non-residential sector accounts for some 28 per cent of total consumption in Melbourne, there is prima facie evidence to suggest that an increased focus could be placed towards this sector with more effective water pricing frameworks and structures.

The purpose of this research project is to update, inform and further advance collective knowledge in relation to:

  • Alternative pricing frameworks and suggested structures designed to improve water conservation in the various segments of non-residential sectors;
  • Customer preferences for alternative pricing frameworks and suggested structures;
  • The likely impact on non-residential water demand from more efficient water prices (i.e elasticity of demand); and
  • The likely impact on trade and business arising from the introduction alternate pricing structures.

The Project will cover:

  • A literature search that identifies and analyses pricing frameworks for various resources across various sectors that may assist development of water pricing structures for non-residential consumers in metropolitan Melbourne.

Development and quantitative/qualitative analysis of options that may be suitable for water pricing.

Supporting documents