No meters? Incredible. I guess if there's no fiscal incentive for individuals to give a rip about their personal water usage, that explains why Kalifornia (and the left-coast states whose water they're using) led the charge to force 1.6 GPF toilets and low-flow showers and faucets on the entire nation.
But, wait. Kalifornians are deeply concerned about the environment and conservation. So, they don't need meters to convince them to conserve, right? </sarcasm>
Water meters also provide a reasonable basis for charging residents more equitably for services such as sanitary sewer and garbage collection, too, since their usage tends to vary based on the number of people in the residence.
I agree with your assessment. Water is no different than any other public utility. One should pay based on how much is used.