A Review on Water Pricing Problem for Sustainable Water Resource

A report that presented at the World Forum II at The Hague in March 2000, said that it would be water crisis around the world and some countries will be lack of water in 2025, as a result of global studies. Inefficient using of water and considering water as free goods which means it can be used as much as we want without any lost. Thus, it causes wasteful consumption and low public awareness in using water without effort to preserve and conserve the water resources. In addition, the excessive exploitation of ground water for industrial facilities also leads to declining of available freshwater. Therefore, this paper reviews some problems arise all over the world regarding to improper and improving management, policies and methods to determine the optimum model of freshwater price in order to avoid its wasteful thus ensuring its sustainability. In this paper, we also proposed a preliminary model of water pricing represents a case of Medan, North Sumatera, Indonesia.