according to french policy wwwdeveloppementdurablegouvfrleaupaieleauhtml waterpaysforwater means that water users consumers and polluters must pay for the infrastructure construction and operation necessary for the production and distribution of drinking water and the provision of sanitation services at the same time the waterrelated expenses of the authorities in charge must be balanced with the revenues received from the water users this principle highlights that no public subsidy explicit or hidden should be provided to the water sector while allowing for crosssubsidisation between categories of water users as well as between individual water users another consequence of this principle is that revenues from water charges or taxes are earmarked for waterrelated services these issues will be explored further in this chapter