INTRODUCTION: In the past decades, increasing population, urbanization and industrial development, have increased demand for water which has resulted into considerable decrease in annual renewable water resources per capita. One of the most important ways to solve the problem of water shortage is pricing. Based on the studies, there is a significant gap between the actual water price and the price paid by consumers. Therefore, design of water price structure is a crucial issue for water utilities and local communities to achieve an efficient allocation of the scarce water resources. In this study, the effect of water pricing on structural changes has been investigated. Structural changes can occur due to changes in total income and changes in relative prices. Structural changes can also occur through changes in input-output (partial) links, which have received less attention in the literature (Neuss 2019). The purpose of this study is to answer the question whether water pricing can cause structural changes in the Iranian economy in the horizon of 2032? METHODOLOGY: In this study, dynamic general equilibrium models have been used. The data required to simulate the scenario proposed in this research is taken from the ninth version of GTAP-E. According to the research objectives, the regions are divided into Iran and rest of the world. Economic sectors include agriculture, coal, oil, gas, industry, petrochemicals, electricity, water and services. Factors of production include skilled labor, unskilled labor, land, natural resources, and capital. In this study, two scenarios are defined. In the first scenario, an impact of 30% on the price of water in the industrial sector is considered. In the second scenario, an impact of 30% on the price of water in the agricultural sector is considered. In the third scenario, an impact of 30% on the price of water in both sector is considered. FINDINGS: The results show that with increasing water prices in the industrial sector (first scenario), skilled and unskilled labor in the agricultural sector decreases. Therefore, it can be accepted that the labor move from the agricultural sector to other economic sectors. Rising prices have also led to an increasing in the employment of skilled and unskilled labor in the coal, oil, gas, petrochemical and electricity sectors. With the increase in water prices in the agricultural sector (second scenario), the increas skilled and unskilled labor in the industrial and service sectors has always increased during the forecast years. Therefore, it can be concluded that one of the important factors affecting the structural changes that have occur slowly over the past years can be the change in water prices in various economic sectors. Also, the reduction of capital in the agricultural sector is associated with the use of capital in the main energy sectors in Iran. CONCLUSION: Structural changes are one of the causes and effects relationship in economic development. Structural changes is formed with the development process itself can also be a factor of development and prosperity. For structural change, generally a shocke in a part of the economy can be a reason for structural change. For this reason, in this study, water prices in economic sectors have been considered. The results show that increasing of water prices in the industrial and agricultural sectors, lead to the population growth of skilled and unskilled labor decreases, but consequently, in the coming years until 2032, skilled and unskilled labor in the industrial and service sectors will experience positive growth. Based on this, it can be concluded that realizing the price of water can help the process of structural change in Iran. Of course, along with the labor force, capital flows have also been affected, which is better reflected in key energy sectors. Therefore, realizing the price of water and taking a step in its direction can help the process of using the active population of the country in order to achieve stable and sustainable growth. Therefore, the policy proposal is that the gradual realization of water prices can gradually cause structural changes in the Iran economy over time, which in turn leads to stable and sustainable growth and, most importantly, employment and the formation of sustainable capacities in industry and services. [ABSTRACT FROM AUTHOR]