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In Virginia, the Prince William County Service Authority is basing both variable and fixed revenues for water and sewer services on a factor derived from the historical average daily water usage of singlefamily residences. A schedule of equivalent residential units (ERUs) relates types of commercial and public facilities to the average usage of a single-family residence. The schedule is applied to initial fees for a proportionate share of capacity as well as ongoing monthly service charges. The concept appears to result in more equitable charges than those based on equivalent meters. The various categories into which water and sewer system costs are placed are described. The capital financing - capital improvements program and the depreciation reserve are discussed also. Includes tables, figures.