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Analyzing the business of water

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Analyzing the business of water

On the surface, the water “business” may not make sense. Water utilities work around the clock to capture, treat and transport a vital product through vast infrastructure to ensure it meets health standards and is available to consumers on demand. It seems like utilities could charge a lot for such a product. Yet, as we know, they often encourage people to use less of it.

Here’s why water conservation is good business for both water providers and consumers:

Reduced Operating Costs

  • Lower energy consumption: Treating and distributing water requires a significant amount of energy – so less water means less energy.
  • Reduced treatment costs: Using less water can mean utilities spend less on equipment, chemicals and other materials to keep water safe for drinking. 
  • Less infrastructure maintenance: Using less water can extend infrastructure’s useful life, reducing the cost for repair and/or replacement.

Delayed or Eliminated Infrastructure Expansion

  • Limit need for new water sources: Efficient water use allows utilities to delay or avoid the need to develop new water sources, such as building new reservoirs, paying for new sources, or drilling new wells.
  • Save money on new treatment plants: Lower water demand can also postpone or eliminate the need to build new water treatment plants, saving significant capital costs. 

Improved Water Quality

  • Reduced stress on water sources: Water conservation can reduce strain on rivers, lakes, and aquifers, protecting these vital resources from overuse and potential pollution.
  • Lower wastewater volume: Less water usage leads to lower volumes of wastewater, easing the burden on wastewater treatment plants and potentially improving the quality of treated wastewater being discharged back into the environment.

Other Benefits

  • Greenhouse gas emission reduction: Conserving water can indirectly help reduce greenhouse gas emissions by reducing energy consumption.
  • Improved community relations: Water conservation programs can foster a sense of community responsibility for water.

DrinkTap’s Water Conservation page offers several suggestions to save water both indoors and outdoors.

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