Guest Column | May 2, 2025

How To Set Realistic Targets To Reduce Non-Revenue Water

By Christian Bonawandt

0525-WOL

Data-gathering is key to goal-setting, and is achievable in 5 steps.

Nearly all water utilities struggle with non-revenue water (NRW). This problem is both costly and a serious strain on what is increasingly considered a scarce resource. Reducing NRW is no simple task, partly due to the large number of ways in which it can occur. But it is achievable. The key is to gather data and set realistic targets. Setting realistic targets is important because it avoids overambitious goals that are more likely to fail and, in turn, demotivate operators, managers, and other stakeholders. To set realistic goals for NRW requires a thorough understanding of contributing factors, as well as the capabilities and constraints of the water utility.

Leveraging Data

Setting realistic targets requires leveraging data so that operators have a firm understanding of where they are starting from and what is needed to make changes. This process can be broken down into five steps.

  1. Baseline Assessment. The first step is to establish a baseline that will help determine the extent of NRW and prioritize areas for improvement. Utilities should start by conducting a comprehensive assessment of the current NRW levels within the water distribution system. This includes measuring physical losses (leakage, system failures) and apparent losses (metering inaccuracies, billing errors, unauthorized consumption). Specifically, operators will need to know the total volume of water supplied to the distribution system over a specific period (e.g., monthly or annually). Next are data on water consumption patterns, such as metered and billed water consumption by customers. Finally, operators will need system performance data, such as pressure levels, flow rates, distribution network characteristics, age and condition of infrastructure, and history of system failures.
  1. Data Analysis. With the baseline data in hand, water utilities can then perform a segmentation analysis. Operators will need to look at NRW data based on different parts of the distribution network, such as zones, districts, or customer categories (commercial, residential, hospital/medical, etc.). This helps in identifying NRW hotspots and prioritizing areas for intervention. In addition, a time-series analysis could be used to pinpoint trends and patterns in NRW over time. For example, utilities may see seasonal variations, trends in consumption levels that impact NRW, and changes in NRW levels caused by interventions or external factors.
  1. Performance Indicators. From there, water utilities must define key performance indicators (KPIs) related to NRW. The most common KPIs are the volume of water lost, NRW percentage, revenue loss from NRW, and relevant water consumption patterns. These indicators will serve as benchmarks for measuring progress toward NRW reduction goals.
  1. Set SMART Goals. Once KPIs are established, water utilities should set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). These will establish realistic and achievable targets for NRW reduction. For example, a SMART goal could be to reduce NRW by 20% over the next two years by focusing on leak detection and repair programs and/or improving metering accuracy. The specific goals will depend on what data were gathered during the baseline assessment and analysis.
  1. Gap Analysis. This step is used to identify the factors contributing to NRW and any potential barriers preventing its reduction. Operators may need to assess the condition of infrastructure, the effectiveness of monitoring and control systems, the accuracy of billing and metering processes, and the level of awareness and compliance among customers.

Implementing The Plan

With targets set and game plan in hand, water utilities can then execute. There are a wealth of advanced technologies and tools that can be leveraged for NRW management, and water utilities would be well advised to consider those that fit their goals and budgets. This may include leak-detection systems, smart meters, and/or real-time monitoring and control systems. Data analytics systems can also help continuously identify NRW hotspots and trends.

But tools alone cannot reduce NRW. Instead, each utility must invest in training and capacity building for staff members involved in water-loss reduction. In addition, water utilities should implement operational best practices such as proactive maintenance of infrastructure, regular inspection, and optimizing water pressure. Where applicable, plant managers should also encourage personnel to take advantage of enhanced meter reading and billing accuracy to implement water-loss control programs.

The final step is to establish a robust monitoring and evaluation framework to track progress toward NRW reduction targets. By regularly monitoring KPIs, conducting performance reviews, analyzing trends, and adjusting strategies as needed, water utilities can achieve NRW reduction goals.

About The Author

Christian Bonawandt is an industrial content writer for Water Online. He has been writing about B2B technology and industrial processes for 24 years.