The Study intends to generate some information which may help in the formulation of economically and environmentally viable water management policies in Arsenic prone areas. Primary goal of the study is to estimate household demand for water quality in Arsenic prone areas.
In the absence of market, indirect expenses made by the households to obtain better quality of water can be considered to measure the demand revealed for Arsenic free water or as theproxy of willingness to pay for the same. People in the affected areas are making various efforts for collection of Arsenic free water. Analysis of such behaviour will be able to show how the households value arsenci free water and will help towards building justification for taking up investment on provision of arsenic safe water.

Households are assumed to undertake activity towards production of good quality water by spendin mainly time and to a limited extent money towards adoption of purification methods. All these enter the utility funtion along with the market good for the household through reduction in sickness from Arsenic contamination. Maximization of this utility subject to the full income budget constraint gives us the willingness to pay. Empirical estimation is done from the theoretical equation.