The contingent Valuation CVM is used to find the household’s willingness to pay for a water supply system improvement in Kallar Kahar valley, Pakistan. About in person interviews of random sample of 201 Households are conducted in Kallar Kahar Tehsil of Chakwal. The data that was used in this study for measuring willingness to pay of 201 respondents was purely cross sectional data. The resident of the Kallar Kahar valley were asked about their willingness to pay for developed water. The willingness to pay of the people was asked keeping in view of their monthly income and expenditure. Households are looking for consistent and purifying water service from Municipal Corporation of Kallar Kahar which is the main body for drinking water supply in Kallar Kahar Valley. Assuming that if the water problem is solved in 2020 with developed water filtration system, then how much the residents of Kallar Kahar will be willing to pay for improved water services? Our results find that the averages Willingness to pay of the households were Rs.176 for the developed water filtration system. According to my research Kallar Kahar is facing huge shortage of safe drinking water per day. Its shows that households are desperately looking for option of consistent water supply service as compared to present system which are water from well, water tank, tube well, tankers, etc. Supervisor:- Dr. Karim Khan