The “user value” is the amount of money (or something else) that a
household or firm would exchange for an additional unit of water at a specific
location and point in time, such as a household with a private connection
using water for domestic purposes, or a farmer abstracting water for
irrigation. The “user value” of an additional unit of water will be determined
by the use to which this water will be put, the amount of money the user has,
and how much water the individual already has. This user value of water is
determined by its transaction value in a world of scarcity.