Increasing block tariffs (IBTs), widely used in the developing world, are claimed to produce desirable income transfers, discourage wasteful use, promote economic efficiency, and assure access to sufficient water for basic sanitation. In fact, these claims are either excessive or incorrect. In practice, IBTs are likely to promote inefficiency, inequity, unfairness, net revenue instability, and other negative consequences. An alternative tariff design, a uniform price with rebate (UPR), is presented.