Non-revenue water (NRW) is water that has been produced and is “lost” before it reaches the customer. Losses can be real losses (through leaks, sometimes also referred to as physical losses) or apparent losses (for example through theft or metering inaccuracies).
Non-revenue water (NRW) is basically produced, cleaned water which is lost somewhere in the water distribution system, never reaching its final destination. This means water not used or paid for, affecting local economies as well as local resources available.

The need to manage NRW better and protect precious water resources has become increasingly important. Non-revenue water (NRW) management allows utilities to expand and improve service , enhance financial performance, make cities more attractive, increase climate resilience and reduce energy consumption.

In a water constrained environment, NRW management often offers superior cost-effectiveness compared to supply augmentation. At the same time, revenues from saved water improve a service providers’ bottom line whilst lower water abstraction increases city resilience.  

But the benefits that arise from reducing NRW are yet to become driving forces behind tackling this endemic challenge in developing countries. Despite the benefits and decades of training and advocacy from international and industry organizations, NRW reduction still receives scant attention amongst those utilities which would most benefit from it – why is that?
Reasons for utilities not making progress include weak capacity, lack of incentives, poor financial discipline and the effort required to find and fix leaks compared to building new treatment facilities. This has created a lethargy which is now being shaken by pressures coming from climate change, water scarcity and increasing expectations of consumers.