Glossary
Water standards and regulation

What is Non-revenue water (NRW)?

Definition

Non-revenue water (NRW) is water that enters a distribution system but is not billed, so no payment is received. It covers real losses, apparent losses and unbilled authorized consumption.

Where NRW is used

NRW is a headline performance measure for public water systems, defined in the standard terminology developed by the International Water Association and the American Water Works Association. The same accounting works inside large private networks, such as airports, campuses and industrial parks, where a bulk supply feeds many buildings and the internal meters rarely add up.

The components, per the US EPA

The EPA guide to water audits and water loss control splits NRW three ways.

  • Real losses: leakage from mains, storage tanks and service connections up to the customer meter
  • Apparent losses: unauthorized consumption, customer metering inaccuracies and data handling errors in reading and billing
  • Unbilled authorized consumption: metered or unmetered use that is allowed but not charged, such as firefighting or flushing

NRW inside a private network

On a campus or airport, the water balance equation does the same job as a utility audit: main supply minus every metered floor, fire system and RO feed leaves the unaccounted loss term, in GPM. Aqueduct trends that term by line and hour, so a step change after midnight points to a real loss, while a slow drift between two meters points to an apparent one.

Questions

Non-revenue water (NRW): common questions

Non-revenue water is the gap between the volume a water system produces and the volume it bills. Utilities report it in their annual water audit using the IWA and AWWA water balance, and private networks can apply the same method internally. Aqueduct's approach is described on the non-revenue water page.

No. Water losses are real plus apparent losses. Non-revenue water adds unbilled authorized consumption on top, so non-revenue water is always at least as large as water losses. The difference matters when setting targets, because flushing and firefighting are allowed uses rather than leaks.

A share of supply moves with demand, so a hot summer can make the same leakage look smaller. Volume per connection or per length of main gives a steadier comparison between years and between systems, which is why the AWWA M36 audit favors volume metrics.

By metering every major branch so unaccounted flow has a location. Aqueduct compares main supply with the sum of downstream meters every 60 seconds, so a night-time step or a drifting meter shows up within hours. Crews then target that branch, as in the reduce water loss use case.

See Aqueduct on your own facility.

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