Is better drinking water valued in the Latin American countryside? Some evidence from Cotacachi, Ecuador

To investigate the financial contribution that rural people might make to the improvement of the potable water systems that serve them, 274 households in Cotacachi in the Ecuadorian Andes were surveyed about payments for watershed conservation, which would reduce seasonal shortages. While monthly payments of $1 or $2 were acceptable to most households, there was little support for payments above $3/month. In addition, multiple regression analysis suggests that 10% growth in annual earnings leads to an increase of 2.8% in payments from rural households for watershed conservation.