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Projections of the influence of single rate structures, declining rate structures, and inclining rate structures on water consumption depend on varying assumptions about how consumer demand will relate to the cost of water. Three crucial assumptions upon which a previous study of rate structures and water conservation was based are examined. Revenue requirements, relative use rates, and price elasticities between high- and low-use groups must be taken into account when alternative rate structures are considered. Includes 3 references, tables, figure.