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The design of municipal water tariffs requires balancing multiple criteria such as financial self-sufficiency for the service provider, equity among customers, and economic efficiency for society. A modeling framework is developed for analyzing how alternative municipal water tariff designs affect these three criteria. It is then applied to a hypothetical community in which a municipal water utility provides metered, piped water, and wastewater services to 5,000 households. We analyze how the shift from a uniform volumetric tariff to different increasing block tariff (IBT) designs affects households’ water use and water bills, and how these changes in turn affect measures of equity and economic efficiency for two different financial self-sufficiency targets. We calculate how changes in assumptions about (1) the correlation between household income and water use, and (2) households’ response to average or marginal prices …