Underpricing of water is more serious because it leads to excess water demand and revenue shortfalls
for water utilities. Underfunded utilities tend not to maintain infrastructure or repair leaks, adequately treat wastewater (spoiling scarce water resources),or extend service to the urban poor, who are then forced to buy expensive water from street vendors (46). Policies that inhibit full-cost pricing for water to ensure social equity or for other reasons may exacerbate this situation (47). When implemented in ways that ensure utility accountability to users and fair rate structures, full-cost pricing may help manage water resources sustainably and equitably (48), sending appropriate and realistic price signals that reflect the true cost (including externalities) of water use.