The aim of this study was to estimate the socio‐economic determinants of the residential water tariff system for Al‐Bireh city, Palestine. Results confirmed that ~60% of respondents considered that the current water pricing as high in Al‐Bireh. The majority (76.4%) of households would be willing to pay 1%–3% of their monthly income for possible new water tariff in return for services provided for them have arisen. More than 55% of families having greater than six family members showed to be more willing to pay higher percentages for water. This correlated to the increase of family members, households found the water pricing more reasonable (36.6%). Large households with higher income that have increased water consumption are more willing to pay larger amounts for their needs. Households with larger family members with limited income and education tend to think water pricing is high and their knowledge behind water pricing is mostly inadequate.

The problem of an outdated tariff has become acute recently with increased water scarcity in Palestine. Therefore, the goals of the study were to analyse the factors that could affect the water consumption in Jericho governorate, Palestine; explore societal perceptions of alternative water sources; and to identify areas that need to be re‐examined for tariff revision or changes to water source and delivery. A total of 76% of the respondents know the water tariff price, and 61% of the sample considers the tariff as high. Future suggestions to raise the price of water will meet resistance. Interestingly, 66% of the respondents agree with the possible future use of treated wastewater, and 46% of the respondents emphasize that treated wastewater is the most favoured solution for water scarcity. Overall, the results indicate the public identifies water conservation as possible and that alternative actions can be applied in order to manage and conserve water resources.