Presentation given by Dr Tom McDonnell at the November NERI seminar. Based on a recent working paper, available here, Dr McDonnell presented findings suggesting that combining a volume based pricing structure with a system of income related water credits may best reconcile the main policy objectives for water services. He proposed a usage based charging structure that would address the affordability issue at a much lower cost to the exchequer than a universal allowance, and if properly designed would ensure that a combination of water charges and low income does not become a barrier to vulnerable households accessing water and wastewater services.