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<br />. <br /> <br />. <br /> <br />.\ <br /> <br />include reducing or delaying new water supply development costs, <br /> <br />and new drinking water and wastewater treatment costs. However, <br /> <br /> <br />temporary supply shortfalls delaying necessary construction may <br /> <br />increase costs due to inflation. Another important benefit relates <br /> <br />to energy costs. Conservation can also reduce municipal and industrial <br /> <br /> <br />wastewater flows, which represent a troublesome environmental problem <br /> <br />due to the potential pollution of surface and ground water supplies. <br /> <br />Various water conservation measures can be effectively implemented <br /> <br />at different levels to achieve the above objectives. At the municipal <br /> <br /> <br />or utility level, metering is very effective, as are leak detection <br /> <br />and system rehabilitation programs. The major drawback to such <br /> <br />measures are the high capital costs involved. <br /> <br />Pricing is another effective alternative to promote municipal <br />water conservation. Potential rate structures include (1) penalty <br />pricing, by raising water prices when use exceeds some defined <br />maximum; (2) peak load pricing, which adds a premium to the cost <br />of water used during peak periods; (3) increasing block schedules, <br />which raise water costs incrementally in proportion to greater <br />usage; and (4) seasonal pricing, such as higher water prices during <br />summer months. <br /> <br />Increasing water costs can have a significant effect on consumption. <br /> <br /> <br />Generally users will react to rising water prices by reducing use, <br /> <br />but often the decrease in usage is only temporary. Municipal demand <br /> <br />for water is quite price inelastic, which means that a 1% increase <br /> <br />~c <br />