Why NRW Audits Are Now a Board-Level Issue
Non-Revenue Water (NRW) is no longer just an engineering concern. It’s a financial, regulatory, and resilience issue. With aging infrastructure, rising energy costs, and tightening compliance requirements, utilities that cannot clearly track water loss KPIs are flying blind. A professional NRW audit gives utilities the clarity needed to quantify losses, justify funding, and prioritize capital improvements, but only if the right KPIs are being measured and reported correctly.
We’ll break down the most critical water loss KPIs, how to apply them, and how utilities can turn KPI reporting into funding-ready documentation.
The Core Water Loss KPIs Every NRW Audit Must Track
GCD (Gallons per Capita per Day)
Gallons per Capita per Day (GCD) measures total water use normalized by population. It’s one of the most commonly cited KPIs in water loss audits and state reporting.
Why GCD matters in an NRW audit:
- Establishes baseline consumption trends
- Highlights inefficiencies tied to leaks or overuse
- Supports conservation planning and forecasting
Common mistake:
GCD alone does not isolate system losses so it must be paired with loss-specific KPIs like ILI.
Infrastructure Leakage Index (ILI)
The Infrastructure Leakage Index (ILI) compares current real losses to unavoidable annual real losses.
Why ILI is critical:
- Industry-standard benchmark for leakage performance
- Removes population and usage distortion
- Directly supports NRW audit findings and funding applications
Typical ILI benchmarks:
- ILI < 2.0: Highly efficient system
- ILI 2.0–4.0: Moderate leakage
- ILI > 4.0: High-priority loss reduction candidate
Additional Water Loss KPIs Utilities Should Track
To strengthen an NRW audit, utilities should also monitor:
- Real Losses (MGD or % of System Input Volume)
- Apparent Losses (metering, billing inaccuracies)
- System Input Volume (SIV)
- Water Loss as % of Operating Cost
- Energy Cost per Million Gallons Delivered
These KPIs connect water loss directly to financial and energy impacts, which is essential for executive and council-level reporting.
How to Apply Water Loss KPIs in 5 Practical Steps
Step 1: Establish a Verified Water Balance
Start with a validated AWWA-style water balance using accurate production, billing, and metering data.
Step 2: Normalize With the Right KPIs
Apply GCD for consumption trends and ILI for leakage performance to avoid misleading conclusions.
Step 3: Align KPIs With Regulatory & Funding Criteria
Most state and federal programs expect:
- Documented NRW audit results
- Quantified water loss KPIs
- Clearly prioritized corrective actions
Step 4: Translate KPIs Into Financial Impact
Convert water loss KPIs into:
- Lost revenue estimates
- Avoided future capital costs
- Energy savings from reduced pumping and treatment
Step 5: Package KPIs for Decision-Makers
Your final NRW audit should produce:
- Executive-ready dashboards
- Grant- and bond-aligned KPI summaries
- Capital improvement justification
Why a KPI-Driven NRW Audit Unlocks Funding
Utilities that track water loss KPIs correctly are far more likely to:
- Qualify for state and federal infrastructure funding
- Secure approval for AMI, pressure management, and leak detection programs
- Defend rate adjustments with data-backed transparency
This is where many utilities struggle, not with data collection, but with turning KPIs into fundable strategy.
Book a KPI NRW Audit with Holistic Utility Solutions
Holistic Utility Solutions helps utilities audit, benchmark, and operationalize water loss KPIs. From GCD and ILI to full NRW audit reporting tied to funding, energy efficiency, and resilience planning, we get it done!
Schedule your KPI Audit today and turn water loss data into action.
