The Impact of Urban Piped Water Network on Water Use: Evidence from Mandalay

Demand for water has dramatically increased in urban areas of many low- and middle-income countries, where piped water networks can provide a safe water supply and help achieve universal access. This study examines the short-run impact of installing an urban piped water network to the premises on water use in Mandalay City. We employ a difference-in-differences estimation using a household-level dataset collected under a quasi-experimental setting. Our findings indicate that, first, households in the installed blocks expanded their total volume of water use and water spending, particularly among richer tercile households. Second, households shifted from private wells to new piped water mainly for non-drinking purposes, as the benefits of reduced fetching time outweighed the higher costs of piped water. Third, poor tercile households reduced their spending on bottled water for drinking, while other groups did not due to the chlorine taste of piped water. These findings show that the impact of the piped water network varies across households of different socioeconomic statuses, highlighting the need for policies to address inequalities in access to safe water.