Synopsis The water supply system is a part of economic activity subsumed under the caption of social infrastructure which is not directly productive but is the necessary basis for the successful growth of productive activities. The economic aspects of public water supply has remained a little researched area in India. The present study endeavours to make a modest contribution to filling this lacuna. The prime objective of the present study is to identify the economic variables determining water demand of households and examine the need for planning the water supply system. Discussing the water pricing patterns in operation, Dr. John has also suggested some suitable criteria for water pricing.