The objective of this project is to identify the overall price signal perceived by customers from the multiple prices associated with block rates. This question is of growing importance since many Texas water agencies are using increasing block rate structures in which water price increases with increasing increments of water use during a billing period. One of the principal arguments used in support of block rates is that they increase the price signal sent to customers to conserve water. This project investigates this hypothesis via both survey research (psychometrics) and empirical evaluation of water use patterns (econometrics). The impact of increasing block rates on peak season water use is of particular concern.