A vast 2.2-million-mile network of water distribution pipes delivers treated water from source to consumer in the U.S. However, this aging infrastructure is under significant strain, with a water main break occurring approximately every two minutes, resulting in the loss of trillions of gallons of water annually. Beyond physical leaks and pipe failures, administrative errors, metering inaccuracies, and unauthorized consumption compound the financial and operational burdens on utilities. 

Non-revenue water (NRW) is a significant but often overlooked challenge in water management. Even minor leaks can waste thousands of gallons each month. Utilities lose water through real losses (e.g., leaks and pipe bursts), apparent losses (e.g., metering errors and data inaccuracies), and unbilled authorized consumption (e.g., firefighting and municipal use). While system leakage is the largest contributor, even small inefficiencies can erode revenues, increase regulatory risks, and raise operational costs.

Despite its financial impact, NRW policy in the U.S. remains fragmented, with inconsistent reporting and minimal oversight. Awareness of the issue is growing, however. Policymakers are introducing new regulations, and utilities are investing in digital monitoring, leak detection, and advanced asset management to reduce losses and improve efficiency.

In this Insight Report, Bluefield Research analyzes 2,500 water loss audits across 11 states, quantifying the scale of NRW, its financial ramifications, and the evolving strategies utilities are deploying to address this growing challenge.