Abstract Water Supply and Sanitation Services (WSSS) face various constraints that hinder their development. The application of sustainable economic instruments may help WSSS policymakers improving the quality of service provision for their clients. This study shows the role of these economic instruments in WSSS management for the case of the city of Souk-Ahras (Algeria). A detailed analysis of expenditures and revenues, focusing on the tariff structure and subsidies, has been carried out. The results obtained show that WSSS in Souk-Ahras suffer from a relevant budget imbalance influenced by the high level of non-revenue water and the application of pricing that does not achieve cost recovery.
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