The innovative rate concepts applied in the Seattle, Washington metropolitan area address the questions of how water systems costs should be split between city and suburban customers, who should pay for suburban growth, and what methods should be used to compute revenues required from wholesale purveyors. Seattle Water Department contracts with suburban wholesale purveyors include allocation of the costs of both old and new facilities, demand metering, and separate rates for supplying "old water" and the additional "new water" needed to meet the demand created by suburban growth. Includes 8 references, tables, figures.