This paper presents the results of a study which examined trends in the behavior of actual and real water prices. For this study, 152 water utilities in the United States were analyzed for the years 1960, 1970, and 1980. Four rate level variables, based on quantities per month, were examined and included small residential use, large residential use, commercial use, and industrial use. Results reveal that increases in water rates have tended to lag behind the rate of inflation during the past two decades. The real price of water, when adjusted for the rapid rate of inflation during the past decade, is less, in many cases, than during the 1960s. The price of water for industrial uses has risen at a higher rate than the price of water for commercial or residential use. Includes 8 references, tables.