The affordability of water service is becoming an increasingly important issue on the local, state, and national levels. Water rates will continue to increase because of new regulatory requirements, the need to replace aging infrastructure, and overall cost pressures such as inflation. For the past decade or more, water rates nationally have increased faster than the rate of inflation. If this trend continues affordability concerns will become even more important.

As a result, the national rural water association and its members should become familiar with the basic concept of affordability, and some of the critically important issues faced by utilities and policy makers when dealing with affordability issues. The paper highlights on safe drinking water act requirements and uses, national, state and local affordability criteria and programs.