Water Pricing Reform Act of 1981

Water Pricing Reform Act of 1981 - Directs that any water delivery contract entered into by the Secretary of the Interior pursuant to the Reclamation Act shall require the repayment of costs of such delivery by the contractor at a rate at least equal to the costs incurred by the government.

Requires contracts involving a project authorized by the Congress after enactment of this Act, or any project for which no contract has yet been executed, to provide for the recovery of costs at a rate determined by the Secretary, including: (1) all construction costs allocable to irrigation; (2) all operation and maintenance costs; and (3) interest on such charges. Authorizes the Secretary to establish higher rates for the recovery of costs to encourage conservation of water resources. Requires the Secretary to recalculate such rates each year and to modify each contract to reflect the cost alterations.

Prohibits the duration of any water service contract entered into after enactment of this Act to be greater than ten years.

Amends the Reclamation Project Act of 1939 to provide that repayment obligations of organizations contracting with the Secretary be fixed to achieve timely repayment of costs consistent with the annual payment capacity of such organization. Prohibits any such contract, subsequent to enactment of this Act, to be reduced on the basis of the contractor's ability to pay.

Prohibits water sold under any contract with the Secretary to be resold without the written permission of the Secretary. Directs the Secretary in reviewing applications for such resales, to establish resale prices to prevent speculation by contractors. Authorizes the Secretary to require payment of a reasonable fee by the seller to cover administrative expenses, or such other purpose the Secretary may deem reasonable.

Provides a procedure for public participation for any contract whose duration is longer than six months, prior to approval of the Secretary. Requires the submission to the Congress for approval of any contract involving the sale or delivery of more than 50,000 acre-feet.