ABSTRACT: Water is the source of life on the planet earth, but the people are facing insufficient supply of water and it has become one of the most important constraints to economic development. The main issue to address in water management is to fulfill the ever-increasing demand for water. The supply of water is usually limited, while the quantity of water demanded has increased mainly due to population growth. It is believed that a rationalized water pricing system would play a crucial role in the optimal allocation of water resources. Planning for efficient use of water is important when there is a severe limit to its availability. INTRODUCTIONWater plays a very important role in the formation and continuation of civilizations and it is a necessary factor for economical development. Actually, water is a fundamental condition for increase in food production, energy development and industrial activities and consequently, to provide employment, security of potable water hygiene, and to protect the biological variety and ecosystem. Water is available almost throughout the planet, but there is big gap in supply and demand, quality and quantity, and timing and place.
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