An overall water-pricing reform that charges tiered prices for household water in urban areas will be launched by the end of 2015, in an effort to encourage people to conserve water, authorities said.

Authorities suggested all cities in the country adopt a three-rate structure, charging more to urban homes that use more water, according to a guideline released by the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development on Friday.

The prices will be calculated based on average monthly household water consumption, according to the guideline.