Willingness to pay for basic water services is often high if the services are appropriate and affordable. This study was aimed at assessing the household's willingness to pay for improved water service in Shebedino District, Southern Ethiopia. The survey was administered to 635 participants from March 29 to April 26, 2008. Findings revealed that the majority of respondents (83.62%) were willing to pay 10 cents for 25 L of water. The average monthly expense of water was 2.36% of their average monthly income. Willingness of households to pay for improved water services was found to be better than the current expenditure.

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