Sustainability of Water Demand Management in Urban Areas Detlef Gielow Abstract The situation in the water sector in Jordan and other countries in the area is characterized by poor water supply and sanitation services. Urban systems are supply-driven and the legal framework is weak with regard to performance-oriented services. The consequences are high unaccounted for water due to physical losses in the networks and commercial losses caused by low collection rates, illegal connections, malfunctioning meters, incorrect meter reading and faulty billing. The tariff system is not adequate to cover operation cost thus leading to further deterioration. The utilities are overstaffed, performance-oriented incentives are lacking. Low performance and organizational inefficiency leads to poor operation of the water supply and sewerage systems, poor asset management, poor network operation and high energy cost and low service quality. Due to low service quality the customers' willingness to pay is low. The revenues are insufficient to cover operation and maintenance cost. Thus re-investment in the system can not be financed leading to a further degradation of the system with the consequence of high water losses and a deterioration of services. How can the vicious cycle be broken up? In the long run it will not be a solution to increase the water supply by exploiting new resources. This is not sustainable since it influences the country's water balance, which even now is characterized by an overuse by 60 % of the existing renewable sources. A demand-oriented approach will be required, the components of which are mainly the following - reduction of unaccounted for water (by improved leak detection and control, improved O&M, rehabilitation of the tertiary network and house connections, establish flow and pressure measurement systems, exchange of water meters and improved meter reading, effective billing and revenue collection - increase of cost recovery (by reduction of energy cost, reduction of staff, improved billing and revenue collection, setting of tariffs which are cost covering and socially acceptable) - introduction of structural reforms of the administration (by creating an institutional and legislative framework for water management allowing for commercial management pactices and private sector participation) As a result the water availability will increase without detrimental effects to the water balance, the operational efficiency will increase, better quality of service for the public and an improved resource protection will be guaranteed. The general objective of the German-Jordanian Development Cooperation is therefore to ensure an integrated form of water resource management that is sustainable in economic, ecological and social terms. This means that the protection and more efficient use of the existing (renewable) water resources is the first priority.