3.  Develop a volume-based pricing mechanism

As part of a long-term strategy to ensure its efficient use, wholesaling of water at the resource at the headgate to IAs is expected to drastically cut down collection expenses. This would entail IAs paying only a single fee, with the IAs taking responsibility for collecting ISF from its members. Volumetric (volume-based) pricing at the headgate enhances accountability, since it provides: (a) greater contract assurances for service delivery by the water supplier/s to the IAs and (b) incentive to properly maintain the distribution system, improve the equity of head- and tail-end distribution and conserve water resources. Pilot-testing of volumetric pricing has revealed constraints to implementation for open canals, as such, therefore, this will initially be introduced in NISs where secondary irrigation facilities or its components have been fully turned over to IAs through the IMT program. In the interim, NIA may adopt and improve socially-acceptable demand-management strategies.