Subsidies reward actions that promote water security and mitigate the impacts of policies, which are unfavourable for underprivileged groups. This way, subsidies are a financial assistance given by the government in order to reach a specific goal. Subsidies are generally defined as any form of payment that is not directly connected to paying for a service. A particular kind of subsidy that is given to farmers and other land users when they follow environmentally friendly practices is called Payment for Environmental Services.

Water prviders frequently provide rebates for theose consumers that are willing to change from older technology to newer, such as low-flush toilets and modern washing machines, convert to water efficient landscaping, or otherwise demonstrate lower water usage. Additionally, some communities have implemented the use of water conservation monitors and water waste hotlines to penalize those that continue to waste the resource.