What is meant by “non-revenue water”?

Non-revenue water refers to water that is produced in a water supply system but is not billed to customers. This can include water that is lost due to issues such as leaks, unauthorized use, or operational inefficiencies, as well as water provided for free under certain circumstances. In essence, it represents the difference between the amount of water that is put into the distribution system and the amount that is actually sold to consumers.

Recognizing and managing non-revenue water is crucial for water utilities, as it impacts both operational costs and revenue generation. By identifying the sources of non-revenue water, utilities can implement strategies to reduce losses, improve efficiency, and ultimately ensure that more of the produced water generates income.

The other listed options do not accurately describe non-revenue water: reused irrigation water and water provided for free to the community represent different contexts of water use, while evaporation pertains to a natural loss of water rather than a billing issue within the distribution system.