Section 243(2) in Arunachal Pradesh Municipal Act, 2007
(2)The State Commission shall determine by regulations separately for each Municipality the terms and conditions of, and the rates for, user charges as aforesaid and, in doing so, shall be guided by the following considerations, namely:-(a)that the rates progressively reflect the cost of supply of municipal services at an adequate and improving level of efficiency,(b)the factors which would encourage efficiency, economical use of resources, good performance, optimum investments and other matters which the State Commission may consider appropriate;(c)that the interest of the consumers of the municipal services are safeguarded and, at the same time, the consumers pay for availing of the municipal services in a reasonable manner based on the average cost of such services; and(d)the production, distribution, and supply of municipal civic services are conducted on commercial basis.