Contingent valuation of willingness to pay for urban water extended to non-urban northern Ghana

ABSTRACT The study sought to examine the willingness of rural and peri-urban communities in northern Ghana to pay for urban water services extended to them, without differentiated tariff determination to suit their socio-economic status as low-income households. Using a contingent valuation method and statistical simulation models, results showed that price per unit of water, income levels and service quality were significantly related to willingness to pay. However, despite stakeholder activities to improve water tariff payment, the process does not consider the views of the local people. Also peri-urban and rural communities connected to urban water systems owed more tariff arrears due to poverty, which negatively impacts on access to water. Alternative approaches such as tariff differentiation and extension of participatory interventions for poverty reduction schemes have been recommended.