According to French policy (www.developpement-durable.gouv.fr/L-eau-paie-l-eau.html), water-pays-for-water means that water users (“consumers” and “polluters”) must pay for the infrastructure construction and operation necessary for the production and distribution of drinking water and the provision of sanitation services; at the same time, the water-related expenses of the authorities in charge must be balanced with the revenues received from the water users. This principle highlights that no public subsidy (explicit or hidden) should be provided to the water sector, while allowing for cross-subsidisation between categories of water users as well as between individual water users. Another consequence of this principle is that revenues from water charges or taxes are earmarked for water-related services. These issues will be explored further in this chapter.