In recent times, there is a momentous increase in the installation of prepaid meters to the customers for either new water connection or for replacement of current postpaid meters with prepaid system. This research evaluates firstly, whether there is a significant difference in the performance of the Palestinian water providers based on the level of installation of the prepaid meters. Secondly, calculating the efficiency scores using Data Envelopment Analysis (DEA) based on the scenarios of prepaid level. The multivariate analysis of variance (MANOVA) shows that there are significant differences in the non-revenue water and debt collection performance indicators of water providers based on the prepaid meter installation. A correlation analysis demonstrates that there is negative significant relationship between the roll-out of prepaid meters, and the performance indicators of non-revenue water, per capita consumption, financial loss, staff inefficiency and water intermittent in the summer season. The (DEA) results reveal that minimum cost, maximum debt collection efficiency, and maximum number of served population, can be achieved through restructuring the water providers by changing their size to medium size and changing their current meters to prepaid system, other things being equal.