Most people are familiar with real, physical water losses— those caused by pipe bursts, system leaks, and overflows. But fewer are aware of apparent losses, which stem from issues such as water meter inaccuracies and administrative data errors. On top of this, water utilities lose revenue from unbilled but authorized consumption, such as water provided for municipal services like firefighting. All these factors fall under the umbrella of non-revenue water (NRW).
In the U.S. alone, 2.7 trillion gallons of water are lost to NRW every year, costing water utilities more than US$6.4 billion annually in unrealized revenue. Given the scale of the issue–volumes and dollars–NRW presents an opportunity for upscaling utility management.
The underground nature of drinking water infrastructure—and the sheer size of the U.S. distribution system, containing over 2.2 million miles of pipe nationwide—means that problems often go undetected for long periods of time. Even when leaks or breaks are identified, limited funding and workforce shortages can delay repairs. In Jackson, Mississippi, a broken mainline pipe discovered in 2016 wasn’t repaired until 2023. By that time, an estimated five million gallons of treated drinking water leaked per day—enough to fill more than seven Olympic-sized swimming pools.
Water loss reduction efforts are fairly commonplace among U.S. utilities. Just over 67% of utilities surveyed by the American Water Works Association in 2023 reported having a water loss control program either fully implemented or in the process of implementation. However, this is a marked decline from over 77% reported in 2020. As numerous systems report water losses above acceptable thresholds, leaking much-needed revenue into the ground, more action remains to alleviate this ubiquitous issue across the water industry.
Accordingly, utilities across the U.S. are adopting innovative strategies to reduce NRW—benefiting both their bottom lines and their customers.
Leveraging digital solutions to proactively address water loss: Utilities are increasingly using digital tools to promptly detect and address both real and apparent losses. Technologies such as drones, leak noise correlators, and predictive analytics help identify hidden leaks in difficult-to-access areas. Improved data management systems also help reduce apparent losses by minimizing entry errors and ensuring more accurate water loss audits. Meanwhile, customer engagement platforms such as smart billing systems and customer information portals enable consumers to monitor their water use in real time and catch leaks early. Smart meter and Internet of Things (IoT) devices allow for remote meter reading and data collection, reducing the need for manual inspections and easing the burden on limited utility staff.
Proper infrastructure maintenance will reduce real losses: Routine maintenance and regular monitoring are critical for mitigating water loss. Over the past three decades, operational expenditure (OPEX) has been outpacing capital expenditure (CAPEX) for utilities in the water sector maintaining aging systems worsened by long-deferred infrastructural investments. Utilities are taking sure-footed steps to minimize real losses, including implementing corrosion control measures, conducting regular leak detection surveys, and optimizing pressure management to prevent pipe bursts. Utilities have also been successful in segmenting systems into District Metered Areas (DMAs) for better monitoring and billing accuracy.
Consistent water loss audits and standards are essential: Industry-wide adoption of standardized water loss auditing practices can also foster a more cohesive national response to NRW. Guidelines such as the AWWA M36 methodology offer a structured approach to conducting audits and implementing control programs. However, only 10 U.S. states currently require use of these standards, leading to a fragmented and inconsistent utility reporting landscape. Without data validation, errors such as negative water loss figures or incorrect units can compromise reporting accuracy.
Even in states without mandates, many utilities voluntarily participate in water loss programs to build best practices. Setting system-wide thresholds (e.g., establishing an acceptable limit of 15% leakage) can help prioritize water loss as a key performance metric. Smaller utilities may also conduct customer censuses to verify service accounts and reduce unauthorized consumption.
Partnerships and collaboration are key: Tight budgets and mounting affordability pressures make NRW a difficult challenge. The U.S. water utility landscape is highly fragmented, with an enormous variation in system sizes and capacities. In fact, a reported 85% of U.S. water utilities employ three or fewer staff members, making it especially difficult for smaller systems to develop and sustain comprehensive water loss control programs.
The type and extent of NRW mitigation can depend on various factors, including system size and ownership (i.e., public vs. private), regional policies, and reporting requirements. With the right partnerships and tools in place, utilities can take meaningful steps toward reducing water loss, boosting system efficiency, and delivering greater value to their customers.
Utilities can benefit and enhance their operations by collaborating with academic institutions, which can provide additional staff support through volunteer initiatives and research programs. Furthermore, by forming partnerships with nearby utilities, particularly smaller systems aligning with larger ones, utilities can share resources and access a broader knowledge network. Additionally, engaging with industry service providers, such as engineering firms and third-party contractors, can offer utilities valuable technological solutions and extra manpower.
Non-revenue water may often fly under the radar, but its impacts are deeply felt on utility budgets and the quality of service delivered to consumers. As water systems across the U.S. face growing financial pressures and aging infrastructure, addressing NRW is not just a technical challenge—it’s a strategic imperative that will benefit us all.
