Why is water underpriced?

Water is often underpriced due to a combination of factors, including government subsidies, lack of proper valuation of environmental and social costs, and insufficient infrastructure investment. Many pricing models do not reflect the true scarcity and ecological value of water resources, leading to overconsumption and waste. Additionally, regulatory frameworks may prioritize access over sustainable management, further contributing to its undervaluation. This underpricing can result in significant environmental degradation and challenges in water resource management.