Water conservation plans should address conservation on the supply side as well as on the demand side. Conservation plans for the supply side (i.e., leak detection and repairs, metering, etc.) may require additional financial resources, however there is some potential for reduction in operating costs and recovery of lost revenues.
Conservation plans for the demand side (i.e. reductions in consumer usage) may result in lost revenues, however, a well-designed pricing program can offset potential losses in revenue.
Other benefits associated with implementing a conservation plan (which include eliminating, downsizing, or postponing the need for capital projects, improving the utilization and extending the life of existing facilities, lowering variable operating costs, avoiding new source development costs, improving drought or emergency preparedness, educating customers about the value of water, improving reliability and margins of safe and dependable yields, and protecting and preserving environmental resources) may also help to balance losses in revenue.