Delhi has witnessed rapid urbanization during the past 50 years, with ever increasing growth in population and economic activity leading to water stress in several parts of the city. This paper looks at the valuation of water as an economic resource in the context of a low-income, infrastructurally disadvantaged urban household, through the results of a primary survey. In doing so, it examines several issues, often interlinked, concerning the quality and quantity of water being accessed by households. While there is no one perfect way of estimating household demand for improved water services, the study uses the contingent valuation approach and evaluates the findings in terms of the health benefits from safe water and the costs of provision of safe supplies.