The availability and management of water resources is a global issue this is, particularly true in countries with limited water resources, such as Palestine, which falls under the Water Stress Line (1000 m3/person/year). Palestine has operated under an -unstable political, economic and social conditions for more than six decades. This uncertainty has resulted in mismanagement, inefficient institutions and the over-exploitation of water resources. The main aim of this study was to produce socioeconomic indicators based on the water tariff structure in order to be pro-poor and to enable water utilities to cope with uncertainties. The study’s recommendation is for a flexible, pro-poor and socially acceptable tariff structure have been based on empirical work and socio-economic data which has been collected by rigorous research and reinforced with case studies. Initial results based on a pilot survey showed that there was a 33% increase in the revenue of the water supplier equivalent to 13% of the total water costs and an increase in the number of beneficiaries that paid their bills ranging from 10.5% to 38.6%. If applied at national level, the model application based on current socioeconomic data would have a wide positive socio-economic impact in reducing poverty, financial equality, social security and reduction of the effect of uncertainties. The reform of the existing legal and institution framework are a prerequisite for the application of this kind of model. Institutional and legal reforms coupled with the application of this model, would produce a dynamic water pricing policy as part of the efforts to have an integrated water management and would serve as a tool for the national goal of poverty alleviation and food security.