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<br />Water Conservation Benefits <br />. Reduced demand of water can extend existing water supplies. <br />. Energy savings by cutting hot water use in a home. <br />. Protection of the environment by diverting less water from <br />streams, lakes and reservoirs. <br />. Reduced utility costs because reduced capital improvement <br />expenditures, which may lead to reduced water rates. <br />Water Conservation Problems <br />. Reduced water revenues due to reduced water sales. <br />. Delay in construction of needed water supply projects is <br />usually a favorable effect unless inflation increases the <br />construction costs, affecting the utility's future ability <br />to fund needed projects. <br />. Increasing water use efficiency under normal conditions may <br />make additional savings during a drought or emergency more <br />difficult to achieve. <br /> <br />15 <br />