This decision was supported by years of discussion and mounting evidence and observations, notably by economists, that the block pricing system was not effective in reducing water use. This amendment removes the extraction levies for farmers and embeds a slightly lower rate of extraction cost in the water price to be applied to all regions. The amendment was meant to reduce regional inequalities, it increased water prices in the north and slightly reduced them in the south. This process also reallocated the collected revenue from the levy from the Ministry of Finance to the state-supported water company (Mekorot) and reduced cross-subsidies by other sectors.