Glossary
Water loss, utilities and public funding

What is AWWA M36 water audit?

Definition

The AWWA M36 water audit is the American Water Works Association method that divides a water system's input volume into authorized consumption, apparent losses and real losses to quantify non-revenue water.

Who uses the M36 audit

Drinking water utilities run it annually, and states including Georgia and California require audits in the AWWA format. A municipal loss control program starts from the audit, then works each loss type: meter testing and billing fixes for apparent losses, and district metering, pressure management and faster repair for real losses. Campuses and airports with private networks can run the same balance internally.

The balance and the software

  • System input volume, corrected for production meter error, equals authorized consumption plus water losses.
  • Apparent losses are customer meter under-registration, data handling errors and unauthorized use. Real losses are leaks, bursts and storage overflows.
  • Real loss is the remainder once every other component is entered, so weak inputs inflate or hide it, per AWWA.
  • The manual is in its fifth edition. Free Water Audit Software version 6.0 was released in 2020 and version 6.1 in 2025, adding a carbon balance for emissions from leakage.

The same balance on a single site

Aqueduct's water twin writes the balance as an equation: main supply equals all floors plus fire system plus RO feed plus unaccounted loss, refreshed every 60 seconds. The unaccounted loss term plays the role of real losses, and a rise points to a specific segment rather than a year-end estimate.

Questions

AWWA M36 water audit: common questions

The AWWA M36 water audit is the North American standard method for a utility's annual water balance, published in AWWA Manual M36. It uses a top-down balance, free audit software and data validity grades so results are comparable between years and systems. Aqueduct's view is on the AWWA M36 compliance page.

AWWA publishes the M36 method as guidance. It becomes mandatory where a state adopts it, as Georgia has for systems serving more than 3,300 people, and Texas requires annual audits from larger utilities too. Utilities elsewhere often run it voluntarily for loss control.

Real losses, apparent losses and unbilled authorized consumption such as firefighting and main flushing. Together they are the volume that earns no revenue, which is why non-revenue water is the headline figure utilities track from the audit each year.

A share moves with demand and hides where water goes. The M36 balance assigns each volume to a category, which makes one year comparable with the next and points loss control work at either meters and billing or leaks and pressure.

See Aqueduct on your own facility.

Bring a site, a utility bill or a question. We will show you where the loss is.