New Era In Water Pricing

The public discourse has been dominated over the last 24 hours by debates on water pricing policy following vigorous interventions before the Parliamentary Agriculture Committee. The Water Development Department has clarified the often contentious issue of the “resource and environment charge,” sending a strong message: this public resource now carries a cost for everyone without exception.

Costs No Longer Considered Free

According to the Department, water can no longer be regarded as a free, inalienable entitlement. From small-scale farmers to investors developing golf courses, all must now contribute to the conservation costs, with charges that scale according to usage.

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Transitioning Away From Reservoir Dependence

Concerns about preferential access for golf courses have also been addressed. Authorities confirmed that the long-standing policy allowing certain golf facilities to draw from reservoirs is being phased out. By May 2026, deliveries of reservoir water to golf courses are scheduled to end entirely. Two major golf facilities in the Paphos district are already completing their transition away from the Aspokremmos irrigation system, shifting instead to alternative sources arranged through local community water projects.

Embracing Alternative Water Sources

Several golf courses now operate exclusively on reclaimed or recycled water. Others partially rely on treated wastewater or licensed private drilling systems. The revised pricing framework has increased charges for golf-related water use more sharply than for most other categories, reflecting the higher volumes typically consumed by these facilities.

Significant Increases In Charges

Under the updated green tax structure introduced in 2025, the total levy for golf courses supplied through government water projects rose from €0.36 to €0.42 per cubic meter. The environmental and resource component increased from €0.02 to €0.08. Water drawn from reclaimed sources is now priced at €0.29 per cubic meter, compared with €0.23 previously. This amount already includes both the financial and environmental elements, particularly in cases involving groundwater extraction. For tertiary-treated recycled water, €0.15 represents the financial fee and €0.14 the environmental and resource charge

Comparative Charges For Various Water Sources

Fees differ depending on the source. Irrigation from licensed private surface reservoirs now carries an environmental charge of €0.22 per cubic meter, double the previous rate. Groundwater abstraction for agriculture, livestock and aquaculture remains comparatively low at €0.01 per cubic meter. Water from government irrigation projects is priced at €0.17 per cubic meter, which includes €0.15 in financial fees and €0.02 in environmental and resource costs.

Legislative Mandates And The Path Forward

The Water Development Department emphasizes that the newly imposed fee is not a reactive measure to droughts but rather a statutory requirement stemming from the 2017 legislation, which mandates equitable contribution from all water users to safeguard dwindling water reserves. The environmental cost here is defined as the economic opportunity cost of environmental degradation (i.e., welfare loss), while the resource cost reflects the opportunity cost of alternative water uses due to overextraction relative to natural replenishment rates.

Compliance Under Scrutiny

Officials warned that Cyprus could face European penalties if water pricing rules are not applied uniformly. Since 2020, implementation has gradually expanded to include water boards, community councils, bottled-water suppliers and other large consumers, bringing all public water users under the same framework.

Balancing Economic And Environmental Sustainability

While some users have reported higher bills, authorities note that the increases are largely driven by consumption volume rather than extreme unit pricing. For most small and medium-scale farmers, the financial impact remains limited. The broader objective is to secure long-term water availability while distributing the cost of protection and infrastructure more fairly across all sectors.