Non-revenue water reduction is quickly becoming a top priority for Texas water utilities, and for good reason. Nearly one in every five gallons of treated drinking water in the U.S. is lost before it reaches a paying customer or is properly billed. This lost water, known as non-revenue water or NRW, represents wasted resources and revenue for utilities. In Texas alone, utilities are estimated to lose over 572,000 acre-feet of water every year through leaks, faulty metering, and other inefficiencies. That’s more water than the annual needs of five major Texas cities combined. For a drought-prone state with a booming population, these losses are alarming.
What Exactly Is Non-Revenue Water?
In simple terms, non-revenue water is water that has been treated and sent into the distribution system but never ends up being billed to a customer. It’s essentially the gap between the volume of water a utility produces and the volume it actually sells to consumers. NRW can be broken down into a few main categories:
- Physical losses (real losses): leaks, pipe bursts, and storage overflows in the distribution system. This is water that literally leaks out of the system before reaching any customer.
- Apparent losses (commercial losses): water that is used but not correctly measured or paid for due to inaccurate meters, data handling errors, or theft/unauthorized use.
- Unbilled authorized consumption: water that is intentionally used by the utility or city without billing, such as for firefighting, hydrant flushing, or street cleaning.
All of these components add up to water that the utility produces but from which it generates no revenue. High levels of non-revenue water are often a symptom of aging infrastructure or limited monitoring. These problems let water (and money) slip through the cracks.
Why Reducing NRW Matters for Texas Water Utilities
Reducing NRW isn’t just a technical issue, it’s a financial and water supply imperative for Texas communities. Here’s why non-revenue water reduction is so critical:
- Lost Revenue: Every gallon of water that fails to reach a customer is lost income. Texas cities collectively lose millions of dollars in revenue each year due to non-revenue water. Meanwhile, utilities still pay to pump and treat that water with no return. Even a small reduction in NRW can translate into significant revenue recovery that can fund infrastructure upgrades.
- Water Supply Stress: Water lost is water that can’t serve your community which is a serious concern in our drought-prone Texas. State data shows Texas utilities are losing about 51 gallons per service connection per day on average to NRW. Cutting those losses in half statewide could save roughly a quarter-million acre-feet of water per year – a “hidden reservoir” that would help meet growing demand without costly new supply projects.
- Operational Strain: Leaks and breaks don’t just waste water, they also waste the energy, chemicals, and labor used to treat and pump that water. High NRW usually points to weak spots in the system (old pipes, faulty valves, inaccurate meters) that hurt overall efficiency. By focusing on non-revenue water reduction, utilities can improve system pressure, reduce main breaks, and enhance water quality by keeping more water in the pipes (instead of seeping into the ground).
- Public Trust and Compliance: Proactively fixing leaks and minimizing waste helps build customer trust, whereas visible leaks or major main breaks can quickly erode confidence. Regulators are also watching. The Texas Water Development Board now requires larger utilities to submit annual water loss audits, underscoring the importance of addressing NRW. By reducing losses, utilities demonstrate accountability and stay ahead of regulatory mandates.
Proven Strategies for Non-Revenue Water Reduction
The good news is that non-revenue water reduction can be achieved with a strategic approach and modern tools. Here are four proven strategies Texas utilities use to reclaim lost water:
- Conduct Regular Water Audits: You can’t manage what you don’t measure. Performing periodic water loss audits (using industry-standard methods) quantifies how much water is being lost and where. An audit highlights problem areas, for instance, zones with abnormally high leak rates, or widespread meter inaccuracies causing billing losses. This information guides which fixes and investments will yield the biggest benefit.
- Upgrade Metering and Use AMI: Modernize your metering system to catch losses faster. Upgrading to smart water meters and an Advanced Metering Infrastructure (AMI) gives utilities real-time visibility into consumption. Leaks or anomalies can be spotted much sooner, instead of waiting for monthly readings. Replacing aging, under-registering meters and leveraging AMI data analytics lets utilities quickly pinpoint issues like customer leaks, meter errors, or unauthorized usage.
- Active Leak Detection: Not all leaks are visible at the surface. Implement an active leak detection program to hunt down hidden leaks in the system. This might include acoustic sensors on pipes, pressure loggers, and even satellite imaging to flag possible leak locations. Advanced monitoring tools can watch for abnormal flow patterns 24/7. By finding and fixing leaks early, utilities save thousands of gallons and avoid the bigger headaches of catastrophic main breaks.
- Pressure Management: Excessive pressure in the network is a silent contributor to water loss which makes every tiny leak gush more and puts stress on pipes. Installing pressure reducing valves and creating district metered areas (DMAs) helps keep pressure at optimal levels. Lower, steadier pressure means fewer new leaks and breaks, and it also extends the life of your infrastructure. Pressure management can be a cost-effective way to wring immediate savings from a water system that is prone to high pressure.
From Awareness to Action: Your Next Step
NRW may be hidden, but its impact on Texas utilities is very real. The upside is that every gallon of non-revenue water you eliminate is water, and revenue, back in your pocket. Recovering this lost water is often far cheaper than developing a new water source for your community, making non-revenue water reduction one of the most cost-effective “new” water supplies available.
So, here’s the million dollar question… is your utility ready to turn water loss from an unavoidable cost into an opportunity? It starts with understanding your system’s water loss profile and taking targeted action. This is where Holistic Utility Solutions come in to the picture.
Free 30‑min Water Audit Review: To help utilities get started, Holistic Utility Solutions offers a complimentary 30-minute water loss audit review. Our experts will assess your utility’s water loss data and outline quick-win opportunities for non-revenue water reduction. Don’t let valuable water (and revenue) slip away.
Contact us today to schedule your free 30‑minute Water Audit Review and start reclaiming lost water for your community.
