Our-turn-to-rule said:
Undervalued by municipal authorities yes...but that doesn't mean it should cost more to consumers.
Conservation and restricted uses will not fix anything and tiered pricing just wastes money.
Look at oil/energy in the 70s versus today. The landscape can change.
Going to disagree.
If it is undervalued, then logic dictates it should be priced according to the value. Not saying that it needs to jump to $10.00 a gallon or anything crazy...but even at higher tiered values, you are talking about less than half a penny per gallon. That simply does not promote any function of non-excessive use because the cost is largely insignificant. And it's not just a user issue with lack of conservation - purveyors have small incentive to reduce leakage in their systems because of the same low cost - and it's even lower for them.
Conservation will, and has, changed a lot of how water is viewed and used in a whole lot of places. Look at the rise of water re-use systems, especially in the more arid environments. 20 years ago reuse was not much of an industry, but now it's a design factor in a lot of projects. It's even starting to become somewhat widely used in Texas, and we are, generally speaking, behind the curve in terms of water systems when compared to a lot of other places in the country. Same with alternative types of source water use - the move from aquifer to surface, the push to use brackish water (especially on the coast) in lieu of surface or aquifer - all are various forms of conservation, and that doesn't even get into the changes in the farming industry that I see people here talking about on occasion.
The only comparison you can make with oil and water is that they are commodities, but it stops there. Completely different industries with the primary difference being that one is a private sector industry and the other is almost purely a public sector industry - different rules, different regulations, different overall end goals. Not to mention that one is a consumed product and the other is a used product that has alternate and downstream uses beyond the main use. Once you burn gasoline, you dont' get it back - a whole lot of your water can be re-used.