Evaluating rural household demand for improved water quality : a case of rural settlements of Qiloane community in Lesotho

This study analyses the demand for quality water supply services in the rural settlements of the Qiloane community. This is a non-market valuation of preferences for quality water supply services given no explicit market at the study location. The study was implemented in response to increasing problems regarding water supply provision in the Qiloane rural locations of Lesotho. Understanding the demand and willingness to pay for improved quality of water supply service is required to make a case for the provision of the service at Qiloane locations. The results provide evidence that in the Qiloane rural community locations, the households are prepared to pay more than the present price for water. The educational level of the household, spending power (monthly income), and households’ perception regarding the existing water supply quality situation were perceived to be important factors establishing the willingness to pay (WTP) of the rural households. Hence, a beneficial policy decision, applied through a water tariff to enhance water supply services, would need to cautiously take into consideration the capacity to pay through expenditure classes. The results also showed that the demand-driven management technique might reinforce water supply enhancements and feasibility. The study utilised a single-bounded format that elicited responses, expressed through respondents’ WTP, to assess whether a presented improvement cost would influence the WTP of the households for satisfying their demand for water quality supply service enhancements in the Qiloane rural community locations of Lesotho. The Qiloane rural community locations were purposely selected because of the poor water supply services prevailing within the said communities. The WTP of Qiloane rural dwellers for enhanced water supply services was thereby educed through notionally acceptable levels of payment for water equipment installations and monthly water fees. Consistent with recent literature on choice elicitations, the referendum question was followed by a certainty calibration approach whereby respondents were requested to specify their extent of certainty to the referendum question for the purpose of mitigating hypothetical bias problem. The Qiloane rural community locations were identified owing to their depressing water supply services; accordingly, the survey data from 106 households was analysed using purposive and simple random sampling techniques, focus group dialogs, a structured questionnaire and in-person interviews. Generally, the households of Qiloane rural residents demonstrated a high degree of knowledge concerning the dangers related to the poorly managed water supply service, and the perception of the health risk is high. Further analysis from the study indicated that in regions where water supply service management is presently offered at a fee, the households demonstrated a WTP considerably higher than the existing fees for reformed services. Additionally, the study revealed that in community locations where no water supply service management is presently provided, the households indicated that they are willing to pay a monthly fee of M250 or even more if such services were to be offered. The outcomes of this study can be used by the water supply service management to conduct a cost–benefit analysis, comparing tariff potential with the expense of delivering the service. According to the outcomes of the survey, the Water and Sewerage Company (WASCO) has a potential to improve the quality of water supply service management practices in locations where they are presently offered at a tariff, and also to offer such services at a fee in regions where they are not presently offered. The analysis from the findings suggests that WASCO could impose a tariff from M250 to M350 for each household on a monthly basis, but still considering the average income classes of the households. However, the substantial monthly fee should be quantified through engagement with the stakeholders concerned.Dissertation (MSc (Agric))--University of Pretoria, 2018.Agricultural Economics, Extension and Rural DevelopmentMSc (Agric)Unrestricte