Abstract:
Water is vital for life. However, many people especially in developing countries have no access to
adequate potable water services. In Ethiopia in both urban and rural areas many people do not get
safe clean water. The need for clean potable water is high. The main objective of this study was to
estimate the total Households willingness to pay for improved water service in the case Bahir Dar City.
In this study the contingent valuation survey method is employed to analyze households' willingness to
pay for the improved water supply services. The study used cross- sectional data collected from 100
randomly selected sampled households from Bahir Dar town. The contingent valuation survey
responses were analyzed through descriptive and econometric analysis using Logit as empirical
models. The total samples were divided into nine sub city’s according to the proportion of households
living in each sub city’s. By using simple random sampling procedure, sampled households were
selected from each sub city’s and interviewed in person. Therefore, the results of the study from the
Logit model suggest that significant factors ought to be considered according to their severity. Marital
status, education, ownership of the house, volume of water used by household in jerry can per day, the
existing water price and income were statically significant factors associated with households’
willingness to pay for the provision of improved water services. Moreover, results from the descriptive
statistics indicated that about 83% of households in the study area were willing to pay something for
the improved water services. Accordingly, the estimated mean WTP for a 20 liter of water was found to
be 0.68 ETB. This further shows households in the town were initiated to pay cost recovery tariff rate.
Indicating, in designing water project/policy socio-economic factors (such as Marital status, monthly
income, educational level) should be considered for successful water project/policy at household level.
