This study assesses the use of economic instruments for water resources management
in Georgia and considers options for reform following the 2014 signature of an Association
Agreement with the EU committing to alignment with the EU’s Water Framework Directive.
This includes the systematic use of economic instruments, including water pricing,
to recover the cost of water services provided to households, industry and farmers,
among other measures.Three main economic instruments are recommended in this study:
1) the introduction of a licensing regime and charges for both surface water and groundwater
abstraction, 2) the restoration of a licencing and charging regime for all forms of
water pollution, and 3) more rigorous enforcement of these measures, including more
active monitoring and higher fines for offenders. Implementing these measures will
be greatly facilitated by the enactment of the new Water Law now being examined by
the government of Georgia.