Loudoun Water System Case Study

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Water in Loudoun County has become a very expensive commodity. Loudoun Water created and started a new, three-tiered billing system. The tiered system with the first tier charges customers who use less than 25,000 gallons $1.77 per 1,000 gallons used; the second tier charges customers using 26,000 to 50,000 gallons $4.96 per 1,000 gallons and tier three charges $6.65 per 1,000 gallons for usage exceeding 50,000 gallons (Hager, 2010). Following a classic neoclassical economics, residents who use a lot of water with pay a higher rate.
Loudoun Water notified the local residents of the new tiered charge system via small flyers within the monthly invoice. Additionally, Loudoun Water representatives also participated with homeowner association meetings,

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