Peak‐load pricing through seasonal price increases without changes in metering and billing practices may produce distortions in efficiency and equity in urban water systems. Demand management models using parameters to evaluate the effect of seasonal price policy upon maximum day sprinkling demands may be misleading because of behavioral constraints to price responsiveness. Proposed are alternative pricing schemes that are likely candidates for improving the operating cost structure and design capacity of water supply systems without violating popular notions of equit
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