The scarcity of water resources and the extreme use of water can put a burden on the quality of water. This problem is becoming serious issue in Pakistan, where water pollution is common in most parts of the country. In urban areas where the population rate is increasing day by day, issues related to water are also rising. This study is based on primary data collected from the urban area of Rawalpindi that is Dhoke Syedan (Rawalpindi). The people of Dhoke Syedan, facing a shortage of water. The main objective of this analysis is to find out which significant determinants are willing to pay for clean drinking water. The list of partial determinants includes age, employment, income, household size, household ownership, gender, and availability of water. Among these awareness and perception are used as latent variables. Nine variables are used to calculate the indirect outcomes of variables using SEM. The structural equation method is an extension leading to a general linear model that allows researchers to analyze a series of regression equations separately. Supervisor:- Dr. Hafsa Hina