Water Pricing in Brazil: Successes, Failures, and New Approaches

Abstract

Brazil is marked by its vastness and contrast in terms of availability and access to water. We select and provide a description of the water pricing experiences in place during the past 15 years at the Doce, Verde Grande, Paraíba do Sul, Piracicaba-Capivari-Jundiaí (PCJ), and São Francisco River basins, which are under federal jurisdiction and, thus, under the responsibility of the Brazilian National Water Agency (Agência Nacional de Águas-ANA). The pioneer pricing system of the Paraíba do Sul River basin has been a reference for others throughout Brazil. Generally, water users are charged for water withdrawal and consumption and for effluent discharge in terms of quantity and concentration of Oxygen Biologic Demand per m3. While ANA is responsible as the federal agency in charge, local basin committees were empowered and make the ultimate decision on setting basic unit prices for water, adjustment coefficients, and granting water permits.