The quality of drinking water is one of the most serious environmental problems for industrial cities in countries with economies in transition. A referendum format contingent valuation (CV) survey was used to elicit household willingness-to-pay responses for drinking water that meets national quality standards. Citizens revealed that, to reduce health risks associated with deteriorating drinking water quality, they currently have to implement various preventive measures and incur some related costs. This behavior indicates a high latent demand for safer drinking water services, which the CV survey evidence corroborates. However, the survey also revealed a high rate of protest bids (53 percent), for which this study attempts to provide possible explanations. Further, the results indicate that households are willing to pay 315.4 Rubles per month from their reported monthly income in addition to their current water bill for safe drinking water.