A primary feature of the Safe Drinking Water Act of 1974 is that the economics and cost of water supply and delivery must be considered before regulations are promulgated. The tools available to water utility managers that will assist in these assessments are limited. This paper describes the development and application of a spatial costing system that will allow the manager to determine the real costs associated with delivering water to the consumer. Cost classification, monthly and annual input data, system maintenance, and data flow are discussed. Includes 7 references, tables, figures.