This research investigated the determinants of bottled water consumption using household survey data from a small, poor town in Guatemala. Hurdle (two‐part) models were estimated to account for 73.3% of sampled households that did not consume bottled water. Findings indicated that the vast majority of respondents perceived minimal health risks from drinking bottled water. In contrast, few respondents (3.2%) believed that tap water is totally safe to drink. Estimation results indicated that bottled water consumption was positively associated to health risk perceptions, household income, education and market access. Household size had a negative effect on the likelihood of consuming bottled water. However, once the household had decided to consume bottled water, its consumption increased with each additional household member.