when appropriately set water tariffs and abstraction charges can inform abstractors about the value of water and provide incentives to use water efficiently including in episodes of droughts they can also provide incentives to direct economic and urban developments in regions where water is more abundant avoiding creating additional liabilities as regards water security see box welldesigned water tariffs and abstraction charges can also stimulate innovation and private sector investments in watersaving technologies and practices or in water storage and allocate water where it creates more social environmental and economic value