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Overexploitation, saline intrusion and limited water supplies are the main problems faced by coastal arid zones. Since these conditions occur in the city of La Paz, we have proposed that the short- and long-term price elasticity of residential water demand be estimated in order to measure the impact of block pricing on efficient use. The results demonstrate that long-term elasticity is greater than short-term. This work contributes to the empirical evidence regarding adjustments in consumption in response to permanent increases in prices.