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This paper is an attempt to describe the major components of drinking water in rural sector and its tariff design. With an integrated approach towards improving Quality of Life (QoL) of rural people, ensuring equity and effective public participation as willingness to pay for water. The pressure of rural development programme has been made a frontal attack on poverty through pricing of drinking water. Therefore, water tariffs should be fixed to make people understand the value of water.
Present paper describes various works done till date in this field of research.