On average, water tariffs allow coverage of operational and maintenance costs but a very limited share of new infrastructure investment, and there are wide variations in tariffs and operation efficiency across municipalities and service providers (MCid, 2014). As in other Latin American countries, a large share of distributed water does not generate revenue. Revenue is lower in poorer municipalities, partly due to social tariffs applied to low-income households; this may discourage investment in extending infrastructure where it is most needed.