Abstract : Basic water supply in developing countries usually does not have a pricing policy for urban basic amenities such as water supply, sanitation, and solid waste disposal. These are normally considered to be public goods to be supplied free of cost. Generally, a token cost is collected which in no way reflects the actual cost of provision. Municipal authorities/state governments in developing countries are especially hard press to design, develop and finance the basic urban services. Various studies on the subject clearly highlight the need for changes in the management practices such as metering; applying appropriate user charges; reducing water losses; increasing water availability; coverage etc .to solve the water problems.