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Abstract
The welfare costs of urban water restrictions are now well recognised, even if not yet
quantified with precision (see, for example, Edwards 2008). Notwithstanding the costs
that attend this form of intervention, governments have proven reluctant to abandon them,
at least until additional infrastructure is in place. Accordingly, some form of behavioural
constraint over the use of water is now applied in almost every major urban centre in
Australia. Against this background there is value in understanding the motivations for
individuals to comply with water restrictions. There is also much to be gained from
developing an appreciation of the preferences for different restriction regimes. There is
also scope to address wider politico-economic considerations as part of this analysis. This
paper considers some of these issues by presenting the results of a choice modelling and
contingent valuation study drawing data from New South Wales and Victoria. The study
also embodies data from water-rich and water-poor communities in metropolitan and
regional settings.