Determinants of non-revenue water for a water utility in California

Abstract

Abstract Physical, technical, managerial, and environmental factors are all known to influence non-revenue water (NRW) volume, so a better understanding of these factors is important if we are to intervene in water loss problems more effectively. This study therefore identified determinants of NRW for a water utility in California by applying fixed effects panel regression analysis incorporating uncertainty. Network length, connection density, and net operating revenue per cubic meter of water sold were found to be negatively correlated with NRW while a positive relationship between number of leaks and NRW was identified. These findings will inform the water utility's management team/decision-makers regarding the specific impacts of NRW's critical factors and guide them to focus on these factors to further reduce NRW as well as set long-term benchmarks.