That sounds reasonable enough, but is it even necessary? How much of the cost of residential water service has anything to do with the market cost of the water

That sounds reasonable enough, but is it even necessary? How much of the cost of residential water service has anything to do with the market cost of the water itself? My guess is that the vast majority of a residential water bill is for covering infrastructure costs, and that even a large increase in the market price of the water itself would barely be noticeable to residential water bills.