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URBAN WATER CONSERVATION Water conservation is the most environ- mentally beneficial and in many cases the least-cost approach to bridging the gap between water supply and demand. A wide range of efficient technologies are available to reduce urban water use in all sectors and new technologies continue to emerge. Conservation offers major benefits to urban water agencies and to the environment. Conservation: ^ Reduces demand for water, thereby allowing more water to remain in the environment, or allowing for more economic output for the same volume of water; ^ Stretches existing water supplies, thereby avoiding the need for expensive and controversial water development projects; ^ Can be implemented in phases as needed, without major capital expendi- tures; and ^ Can eliminate or delay capital expendi- tures for sewage treatment capacity. Water conservation can, however, create new challenges and risks for urban water agencies: ^ Estimation of water conservation savings and cost effectiveness can be difficult. ^ Conservation reduces water sales. Since most water utility costs are fixed, water conservation can reduce revenues and cause rate hikes, although with conser- vation, the water user's total bill may actually decrease. ^ The impacts of water shortages during a drought period may be more severe for an efficient water system. ,~ Water agencies have, however, found various ways to mitigate these risks. As conservation becomes increasingly wide- spread, estimates of cost savings and cost effectiveness are becoming more readily available and reliable (see Seattle Water Department Home Water Saver Program, Washington). Agencies have also recog- nized the need for drought contingency planning to offset the additional inpacts of drought on efficient water systems. The following stories describe residential conservation programs in Los Angeles and Seattle, a wastewater effluent reuse and recharge program in Arizona, and an institutional mechanism developed in California to promote urban conservation. 41 Luann oi~~a9E~,,,,,