摘要:This study is conducted in Hayatabad Town, Peshawar, Northern Pakistan. The article is based on a survey of 150 randomly selected households. The authors use the contingent valuation method and apply the multinomial logit model to elicit the households’ willingness to pay for safe drinking water as well their risk averting behavior. The study revealed that the sample households’ willingness to pay for improved drinking water is significantly determined by households’ awareness, levels of education, income, etc. The study concludes that the sample households are willing to pay much higher than their current monthly bills charged by City Development and Municipal Department, Peshawar.