Estimation of Water Demand Function in Golestan Province Household Sector

The aim of this paper is to assess the demand function of municipal water for of Golestan province by adopting a pooling data model during 1999-2011 to determine the minimum requirement of water quite necessary for livelihood. The results indicate that the price elasticity of demand is -0/26, income elasticity of demand is 0/00095 and cross elasticity of demand is -0/2. Therefore, water is an essential and complementary commodity. The minimum requirement of water is 687 liters daily.