How it works

Currently in all urban water markets/jurisdictions part of the income from the sale of water to consumers is ear-marked for capital works and sustainability measures to both increase supply and to conserve water. In most jurisdictions the unit price of water for those who consume more increases with consumption (via so called block tariff pricing schemes).

With Water Rewards these funds are channelled through members, who consume less than the sustainable amount of water (see figure below). Rewards are only available to be spent on projects or devices that will help further sustainability of water supply. The rewards will gravitate to those projects or devices that give the reward holders the best return on their investment ie. to those devices/projects that save the most water.

The money for rewards is the difference between the wholesale price and the price charged to Water Rewards members which will normally be the same or more than that charged by the Water Authority. Rewards are transferable and a market will be established for rewards. The cash value of rewards will always be less than their face value.

Water Rewards itself is a water saving project because it encourages members to consume less and hence it can buy rewards and use the difference between the purchase price and the face value to provide further capital to develop the Water Rewards. It will always provide a market for trading water rewards.