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The specific objectives in adopting a demand side management (DSM) approach to water supply planning are: reduce/eliminate wasteful uses of water; use the water savings to support additional population growth, farmland development, or other water resources uses; defer the costs for expansion of water supply facilities that would be otherwise be required. An effective DSM strategy for saving water involves integrated application of: universal metering of service connections ("the tool" for monitoring the effectiveness of water saving programs); a water rate structure based on a user pays philosophy ("the incentive" to save water); public education ("the mechanism for instilling an ethic" that water conservation is a way of life). The underlying objective of this paper is to focus attention on the need to address the true value of water, and the impact of pricing and metering as mechanisms for saving water. To this end, the paper includes a discussion of different types of water rate schedules (flat, declining block, constant rate, and increasing block).