OICC Press International Journal of Agricultural Management and Development 2159-5860 2 4 2012 09 01 Applying CVM for Economic Valuation of Drinking Water in Iran 209 214 EN Morteza Tahami Pour Ph.D Student of Agriculture Economics, Department of Agriculture Economic, University of Tehran, Iran Mohammad Kavoosi Kalashami Ph.D Student of Agriculture Economics, Department of Agriculture Economic, University of Tehran, Iran Journal Article 2012 09 01 Economic valuation of water is useful in the administration and management of water. Population growth and urbanization caused municipal water demand increase in Iran. Limited water resource supply and urban water network capacity raised complexity in water resources management. Present condition suggests using economic value of water as a criterion for allocating policies and feasibility study of urban water supply projects. This study use contingent valuation method for determining economic value of drinking water in Kohkiloye & Boyerahmad province. Required data set were obtained from 177 questionnaires by applying stratified random sampling in 2011 year. From 136 investigated urban households 111 ones are willing to pay more for qualified drinking water. Also, from 41 investigated rural households only 3 ones are willing to pay more for qualified drinking water. Results indicated that economic value of drinking water is 6877 Rial per cubic meter.