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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jenvman.2010.07.029 Byline: Maria A. Garcia-ValiA[+ or -]as (a), Roberto Martinez-EspiA[+ or -]eira (b), Francisco Gonzalez-Gomez (c) Abstract: Using information on a basic or 'lifeline' level of domestic water use obtained from a water demand function based on a Stone-Geary utility function, a minimum water threshold of 128m.sup.3 per household per year was estimated in a sample of municipalities in Southern Spain. As a second objective, water affordability indexes were then calculated that relate the cost of such lifeline to average municipal income levels. The analysis of the factors behind the differences in that ratio across Andalusian municipalities shows that the relative cost of purchasing the lifeline appears inversely related to average income levels, revealing an element of regressivity in the component of water tariffs affecting the least superfluous part of the household's consumption. The main policy recommendation would involve redesigning water tariffs in order to improve access for lower income households to an amount of water sufficient to cover their basic needs. The proposed methodology could be applied to other geographical areas, both from developed and from developing countries, in order to analyze the degree of progressivity of the water tariffs currently in effect and in order to guide the design of more equitable regulatory policies. Author Affiliation: (a) Toulouse School of Economics, LERNA, Manufacture des Tabacs, 21 allee de Brienne, 31000 Toulouse, France (b) Department of Economics, Memorial University of Newfoundland, St John's, Newfoundland and Labrador A1A 5S7, Canada (c) Departamento de Economia Aplicada, Facultad de Ciencias Politicas y Sociologia, Universidad de Granada, C/Rector Lopez Argueta s/n. 18071, Granada, Spain Article History: Received 9 November 2009; Revised 1 July 2010; Accepted 19 July 2010