Non-revenue water (NRW) comprises water, that is lost physically, as well as water that is apparently lossed, due to metering inaccuracies, data errors or unbilled authorized consumption, like firefighting. As Megan Bondar, an analyst at Bluefield Research, pointed out, the share of physically lost water, running out through leaks and pipe bursts, amounts to about 87 % of NRW.

“Non-revenue water is a significant and often overlooked challenge in municipal water management, and in many respects, core infrastructure delivering drinking water is approaching the end of its useful life,” asserts Megan Bondar.

Aging networks, limited ressources at smaller utilities

Water Loss and NRW by Utility Type,   Source: Bluefield Research

The analysts blame the vast and aging distribution network spanning more than 2.2 million miles across the country contributing mostly to the losses. However, losses are not distributed evenly over all states or all sizes of utilities. The graph reveals the water losses and NRW by utility type. IOU means investor-owned utility. This is a private enterprise acting as public utility.

Losses not evenly distributed across the country

U.S. water systems collectively lose approximately 6.75 billion gallons (approx. 25,5 million cubicmeters) of treated drinking water daily. Just five states—California, Texas, Florida, New York, and Illinois—account for over one-third of national losses, collectively exceeding 2.44 billion gallons daily, or roughly US$6.3 million in uncaptured revenue. Loss rates vary widely across the country, influenced by pipe age, material type, weather exposure, and system density. The South accounts for 37.2% of total national losses, driven by the scale of water networks in states like Texas and Florida.

A cohesive national policy framework is missing

Despite growing operational and financial challenges, the U.S. still lacks a unified national policy framework to address non-revenue water (NRW) across nearly 48,000 community drinking water systems, according to Bondar.

“While states like California, Georgia, Indiana, and Texas have begun to standardize reporting and validation requirements, many utilities still struggle with accurate, validated data—limiting transparency, performance benchmarking, and effective corrective action.”

A combination of supply chain disruptions, aging infrastructure, and rapid digital innovation is prompting utilities to rethink their approach to water loss management. Technologies like advanced metering infrastructure, satellite leak detection, acoustic sensors, and smart customer engagement platforms are evolving from experimental pilots to core operational strategies for identifying and reducing real losses. However, technology alone isn’t a complete solution. Traditional, field-based approaches, including pipe replacements, regular inspections, and hands-on monitoring, remain critical for maintaining system resilience and reliability. In some cases, utilities are adopting highly localized approaches.

“Some communities even rely on trained dogs to detect leaks,” Bondar notes. “This highlights how varied and context-specific water loss solutions can be, underscoring the need for tailored strategies that align with each utility’s unique financial and operational challenges.”