The Urban Local Bodies are mandated to make adequate provision for the management and maintenance of all municipal water works and construction of new works for providing supply of suitable water for public and private purposes. This requires adequate resources which are to be raised from consumers. Inadequacies in management include high proportions of non-revenue water, poor billing arrangements, limited metering, non-viable pricing, lack of proper municipal dues collection, and poor revenue recovery rates leading to commercially non-viable urban local bodies, and inadequate service coverage especially in the slum and squatter settlements to improve service delivery. The prevailing water tariffs are generally below the actual cost of water supply. Moreover, the urban water supply sector has traditionally been plagued with high levels of inefficiencies leading to poor service delivery. This leads to a poor willingness to pay among the consumers and consequent poor collection of water charges and financial losses to the urban local bodies. Rationalization of water tariff and its billing and collection system is one of such measures to improve fund mobilization.