It provides an overview on how they currently operate and provides suggestions on how they could be improved to support attainment of water policy objectives. The discussion extends to an analysis of how they could be combined with other policy instruments (regulation, or information-based ones) and policies (e.g. energy efficiency, food security, urban development, etc.) Tariffs for water services, in particular water supply and sanitation, are not covered by this report, except in so far as abstraction and pollution charges are likely to be reflected in water bills for final users.