Water pricing is generally set by governments based on national conditions and often uses a cost-to-consumer scale (agriculture, industry, home-owners, etc.).

Water is subject to an extremely wide range of prices, tax rates, and exit fees.
International water agreements are less frequent, and often clouded by political issues. Differing national price patterns complicate discussions among the parties.

Water needs a standard, impartial method for setting a market value. A definite market value will allow water to be used as security for loans.

Based on the following three fluctuating measures including the current price of traded agricultural commodities, the Aqua Index algorithm extracts the inherent value of fresh water.