Independent pricing models of urban reused water

Regarding to the blindness and arbitrariness in urban reused water pricing in China, this paper provided theoretical models and practical methods of independent pricing of reused water, based on the comprehensive considerations of market demand and production cost. Firstly, proceeding from the hypothesis that reused water can be used by consumers only when they can cut down expenses, an independent pricing model regardless of water quality difference was founded. On this basis, a pricing model allowing for water quality difference was founded by applying the utility function which contains quality preference parameters. Finally, the independent pricing methods were reviewed and some suggestions were put forward. The outcome of independent pricing is mainly determined by supplier's sufficient market research and operation plans. It can be applied to improve pricing efficiency.