Water consumption is a function of complex interactions of physical, social, and economic influences on individual consumers. In the present era of shrinking budgets and rising costs, curbing consumer demand is increasing in importance. Pricing policies are frequently singled out as a tool to manage that demand. Single unit rates and even inclining block rates are promoted by many would‐be conservationists, while declining block rates are seen as encouraging waste. The author suggests that, given measured tendencies of residential and commercial and industrial consumers, declining rate structures can encourage water conservation.