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Water supply management to the peri-urban areas of the developing world is a complex task due to migration, infrastructure and paucity of fund. A cost-benefit methodology particularly suitable for the peri-urban areas has been developed for the city of Kolkata, India. The costs are estimated based on a neural network estimate. The water quality of the area is estimated from samples and a water quality index has been prepared. A questionnaire survey in the area has been conducted for relevant information like income, awareness and willingness to pay for safe drinking water. A factor analysis has been conducted for distinguishing the important factors of the survey and subsequent multiple regressions have been conducted for finding the relationships for the willingness to pay. A system dynamics model has been conducted to estimate the trend of increase of willingness to pay with the urbanizations in the peri-urban areas. A cost benefit analysis with the impact of time value of money has been executed. The risk and uncertainty of the project is investigated by Monte Carlos simulation and tornado diagrams. It has been found that the projects that are normally rejected in standard cost benefit analysis would be accepted if the impacts of urbanizations in the peri-urban areas are considered

Water supply project feasibilities in fringe areas of Kolkata, India