The root of the widespread crisis in the world's water sector is the failure of suppliers and consumers of water to treat it as an economic resource. In countries at all stages of development and in many climatic zones, water is treated as though it were plentiful and costless. The result is an automatic search for new supply sources at escalating economic and environmental cost, and the persistence of wasteful supply, delivery and consumption systems. Managing Water as an Economic Resource argues that planners, managers of water utilities and consumers alike need to recognise the benefits from the economic valuation of water, the greater role for the private sector in its supply, and the importance of encouraging water markets where the resource can be directed to its highest value use. Policies for the improved management of existing demand are evaluated through the use of global case studies. Suggestions are offered for how the required measures for treating water as an economic good can be introduced to confer major economic, financial and ecvironmental benefits.