Value chain analysis has been increasingly recognized in recent years as an important tool in development and environmental research. It has dramatically changed over time, and has expanded due to the internationalization and globalization process. Question is a complex issue involving problems of natural resources conservation as well as general issues.
To evaluate the system different kinds of factors and methods collected and compared to measure the macro impact level for public water supply in Hilla city. Questionnaire data permit objective assessment of larger scale pattern, trends and relationships, focus on the actions and activities to check the reliability to formulate decisions on environmental problems. Preliminary assessment during 2012 indicated that no adverse impacts on public health or environment were observed. Interrelationships produced a nonmathematical model which show that environmental value chain of water supply of 86 %, with impact 14 % in the survey level, over a period of one year. Five factors incorporated in optimizing water supply chain operations to cost less and be more effective, represent by: Quality ( 85 %), Accessibility ( 95 %) , Feasibility ( 85 %), Flexibility ( 74 %), Current time and future ( 78 %).