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The water requirement greatly increased due to population growth, increased agricultural areas and industrial development, thus causing high water demand. The complex problems facing by country is water pricing is not designed optimally as a staple of human needs and on the other hand also cannot guarantee the maintenance and distribution of water effectively. The cheap water pricing caused increase of water use and unmanageable water resource. Therefore, the more optimal water pricing as an effective control of water policy is needed for the sake of ensuring water resources conservation and sustainability. This paper presents the review on problems, issues and mathematical modelling of water pricing based on agriculture and domestic groundwater for water sustainability and conservation.