Water Loss Manual

Texas Water Development Board

P.O. Box 13231
Austin, Texas 78711-3231

May 2005
 TABLE OF CONTENTS

Page
I. INTRODUCTION.....................................................................................................1

II. WATER AUDIT IMPLEMENTATION ..................................................................2

III. TOP DOWN AUDITS ..............................................................................................2

IV. BOTTOM UP AUDITS ............................................................................................2

V. DEFINITION OF TERMS........................................................................................2

VI. UNDERSTANDING THE METHODOLOGY........................................................3

VII. WATER AUDIT WORKSHEET..............................................................................5

VIII. WATER AUDIT WORKSHEET INSTRUCTIONS................................................9

IX. WATER BALANCE...............................................................................................14

X. PERCENTAGES VS VOLUME OF WATER .......................................................14

XI. WATER LOSS AUDIT PROGRAM......................................................................15

XII. METER SELECTION AND INSTALLATION.....................................................15

XIII. METHODS TO LOCATE AND MINIMIZE WATER LOSS ...............................18

XIV. PERFORMANCE INDICATORS ..........................................................................21

XV. CONCLUSION .......................................................................................................22

XVI. RESOURCES..........................................................................................................23

XVII. FORMS AND TABLE............................................................................................25

XVIII. INFORMATION HANDOUT ................................................................................35

This publication of the Water Loss Manual was developed by the Texas Water Development
Board (TWDB) in response to HB 3338 passed by the 78th Legislature, that requires all retail
public water suppliers to Texas to file a water loss audit report once every five years. This
document was developed by Texas Water Development Board staff Mark Mathis. Special thanks
to Andrew Chastain-Howley, George Kunkel and Julian Thornton for their knowledge and input.

Additional information regarding water loss can be found at the TWDB website,
www.twdb.state.tx.us or by calling Mark Mathis with the TWDB at 512-463-0987.
 TEXAS WATER DEVELOPMENT BOARD

WATER LOSS MANUAL

INTRODUCTION

All across Texas there are water availability concerns that invite utilities to perform better as water
stewards. Water loss reduction is twofold. As water loss decreases, conservation and water supply is
increased. Local communities will be more apt to conserve once they see their water utility participating in
the conservation process.

An audit from an accounting perspective is simply confirming and compiling information on the entity as a
whole. Many utilities have not previously conducted water audits and those that have, only compare water
produced to water sold. Water audits have not been widely utilized in the water industry, mainly due to the
low cost of water supply, treatment and distribution. However, with rising supply costs and the general
public becoming more informed about water availability, the industry is recognizing the need to minimize
water loss.

One could ask hundreds of utilities across the nation and they would all give a different definition of
Unaccounted for Water (UFW). Water loss and UFW have been used interchangeably. If water was not
accounted for then it was simply classified as “water loss.” The new method introduced in this manual
eliminates UFW from being used. Now there is a category for every type of use.

The new methodologies being used which enable water utilities to operate very efficiently. Based on the
International Water Association’s (IWA) methodology which has been used all over the world and recently
in the United States, these methods are proven to work. They eliminate UFW, but also and the end results
direct focus to problem areas. This methodology implements new terminology that will need to be
thoroughly understood: corrected input volume; authorized consumption; apparent loss and real loss.

The Texas Water Development Board (TWDB) recommends this methodology for all utilities across
Texas. This method is being used for the implementation of HB 3338, which requires all water utilities
statewide to conduct a water audit once every five years. As utilities learn and implement the methods that
are proven to minimize water loss, they will begin to view water loss with a new understanding.

1
WATER AUDIT IMPLEMENTATION

The term “water loss” is now broken down into two separate categories that enable the utility to put
distribution loss into the real loss category and meter inaccuracies and theft into apparent loss. With the
current system of putting all types of loss into one category, the utility could not focus or direct its
resources to the area of the loss. The utility was simply guessing as to the area needing assistance.
Implementing audits into the business cycle will enable the utility’s operation to become more efficient
with each passing year. Utilities need to understand that it may take time before results can be expected
from a meter replacement program and/or leak detection program.

Initially, smaller utilities may see that the implementation of audits will warrant a few estimates. Over a
several year period, these smaller systems will see that obtaining valid data assists them in lowering their
losses.

TOP DOWN AUDITS

Top down audits are paper audits that utilize data the utility should already have without additional
fieldwork. These are referred to as “desk top” exercises. Data is transferred from other reports to the water
audit form, enabling the utility to see which areas warrant more fieldwork. This type of audit is typically
less expensive than a more thorough bottom up audit. Top down audits are the method chosen for
implementing the water loss reporting requirements of HB 3338.

BOTTOM UP AUDITS

This is the second part of the audit process. The utility confirms the data used in the top down portion.
Bottom up audits are usually implemented only after the utility has a thorough understanding of the
findings from the top down audit. Bottom up audits are more costly due to the amount of time, staff hours,
and detailed work that is required. They include each aspect of the utility: billing records, distribution
system, accounting principles, and all other programs within the utility. This audit will identify all internal
issues that are preventing the utility from achieving high efficiency. Utilities can implement this method
once they have completed several top down audits.

DEFINITION OF TERMS

Own Water – Water that has come from a utility’s own sources, such as well fields, water rights, or a
reservoir.

Purchased Water – Water that has been purchased or bought from another entity.

Input Volume/Water Delivery – All the water that is purchased, owned, or obtained by interconnects
(water imported).

Water Supplied – Defined as system input volume minus water exported.

Water Exported – Water that is transferred out of the system to a buyer where revenue is received.

Master Meter Accuracy – Obtained by calibrating master meters. The utility checks the accuracy of the
master meters, and then either adds or subtracts this number, depending on whether the meter was under or
over-registering, from system input volume to determine the amount of water that was actually put into the
distribution system.

Corrected Input Volume - The sum of Master Meter Accuracy and System Input Volume is the amount of
water that was actually put into the system.
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Authorized Consumption – Consists of four sub-categories that include all authorized water use:
1. Billed Metered – The water that has been sold and for which compensation from customers
has been received.
2. Billed Unmetered – For all uses that have not been metered but compensation is received.
3. Unbilled Metered – For all uses that have been metered and no compensation is received
(used for treatment plant, line and hydrant flushing.)
4. Unbilled Unmetered – All uses that are unmetered and no compensation is received (line and
hydrant flushing or any other uses that are authorized but unbilled and unmetered.)

Depending on how city
offices, parks, fountains,
line flushing, fire
department use and/or
other operations are
classified, they can be any
one of the four types of
authorized consumption.
Just include them under
the correct category for
accurate accounting.
Water Loss – Comprised of apparent loss and real loss. Corrected Input
Volume minus Authorized Consumption equals Total Water loss.
Apparent Loss – Consists of accounting errors, inaccurate customer
meters, illegal connections, and bypassed meters. Because this water
was available for sale, these losses are incurred at the retail rate.
Real Loss – Consists of all types of leaks, bursts, and storage tank
overflows that occur before the customer’s meter. Because this water
did not have the opportunity to pass through a customer’s meter, these
losses are incurred at the production rate.

Revenue Water – All water consumption that requires revenue collection: Water Exported plus Billed
Authorized Consumption.

Non-Revenue Water – Water that is not billed and revenue is not received. This is equal to Unbilled
Authorized Consumption plus Apparent Losses plus Real Losses.

UNDERSTANDING THE METHODOLOGY

In accounting terms, an audit is defined as confirming and compiling information gathered on the entity as
a whole. The utility is merely verifying that all the data being gathered is the most valid data possible.
With this methodology, utility operations are broken down into numerous categories with questions that
should verify the data validity.

System Input Volume

The total water supplied to the infrastructure is the System Input Volume. System Input Volume includes:
purchased surface or ground water, the water obtained through interconnects, or water obtained from other
sources.

Master Meter Accuracy

This is the verification or the calibration of master meters to ensure their accuracy. Once the accuracy level
has been verified, the percentage of accuracy is documented. Adding this number to the uncorrected meter
volume will provide the corrected input volume - the volume that was actually pumped into the distribution
system.

Corrected Input Volume

This is simply the sum of either adding or subtracting the master meter adjustment to input volume. This is
all the water that is actually in the distribution system and available to sell.

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Authorized Consumption
This category consists of all water that have been authorized for use or consumption. Authorized
consumption includes the following sub-categories:

Revenue Water
1. Billed Metered – Customer accounts whose meters are read and who are billed appropriately
each month. Since this category determines revenue, these meters are most important
regarding accuracy. All connections should be metered and on the current billing cycle. A
program allowing for all construction/landscaping companies to rent a meter can be
implemented, resulting in obtaining revenue for the water and add an additional revenue
source.
2. Billed Unmetered – Requires submittal of a form documenting the amount of water used
during the month.
3. Water Exported – Water that has been authorized for use by another utility or water provider
for which revenue or compensation is received.

Non-Revenue Water
4. Unbilled Metered – This category could contain city/government offices, facilities and uses.
Even if city offices are not billed, they should have a meter for determining water use.
Irrigation of city parks, fire department use and line flushing should also be included. Fire
departments should have a form to track usage that would require documentation of how many
times the trucks were filled each month (see Form C). A monthly estimate from the fire
department should be more accurate than a utility’s.
5. Unbilled Unmetered – A utility could have all its city/government offices/operations set up
under this category. Unmetered line flushing estimations may be entered for this category (see
Form D).

It is important to remember that in order to locate leaks or usage, the consumption of each connection
should be metered.

Water Losses
This is the difference between Corrected Input Volume and Authorized Consumption. This consists of two
major sub-categories: real losses and apparent losses. Both are considered types of water loss. Real losses
are figured at the marginal production cost of water. Apparent loss is figured at the retail rate, because its
loss is after the customer meter.

1. Real Losses – These losses are measured from the pressurized point up to the point of
measurement of the customer usage. These are physical losses from the infrastructure, mains,
valves, service lines and main lines. There are many reasons for leaks: poor installation and
workmanship; pressure transients; pressure fluctuations; lack of scheduled maintenance on
valves and hydrants; or excessive pressure. All of these contribute to line loss. With proper
system management, they can be kept to a minimum.

2. Apparent Losses – These losses occur when potential revenue water is removed from the
system either through theft, meter inaccuracy, or billing procedures that prevent all water from
being included in the water loss calculation. All utilities should have a meter replacement
program in place.

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 WATER AUDIT WORKSHEET

Utility Name: _________________________________________________________________

Type of Utility: (circle one) WSC MUD WCID SUD CITY Other______________

Regional Water Planning Group(s) in which this system operates: ________________________

http://www.twdb.state.tx.us/mapping/maps/pdf/sb1_groups_8x11.pdf

Name of person completing this form: ______________________________________________

Phone number of person completing form (with area code) ______________________________

Mailing address of utility: ________________________________________________________

Reporting Period: From ____________________ To____________________________

Percentage of water used: Surface___________ Groundwater________________

Mean household income of population served: ________________________________________

http://factfinder.census.gov/servlet/SAFFPeople?

Population served: _______________________________________________________________

Note: unit of measure (acre-foot or million gallons) must stay consistent throughout report

1. SYSTEM INPUT VOLUME MG ACRE-FT OTHER_______________

System Input Volume - Amount of water put into delivery system: ______________

Master Meter Adjustment - Volume master meter did not account for: +/- ______________

Corrected Input Volume - Water delivery plus/minus Master Meter Adjustment: ______________

2. AUTHORIZED CONSUMPTION

Revenue Water
Billed Metered - All water sold: ______________

Billed Unmetered - All water sold but not metered: ______________

Non-Revenue Water
Unbilled metered - City and local government use, metered line flushing: ______________

Unbilled unmetered - Line flushing/fire dept use: (estimate) ______________

Authorized Consumption - The total of all Authorized water: ______________

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3. WATER LOSS

Apparent Loss

Customer Meter Under-Registering – Inaccurate customer meters +/- _______________

Billing Adjustment/Waivers _______________

Unauthorized consumption (theft or estimate) _______________

Total of Apparent Loss _______________

Real Loss

Storage tank overflows (estimate) _______________

Main break/leaks: (estimate) _______________

Customer service line leaks/breaks: (estimate) _______________

Total of Real Loss _______________

Total Water Loss = Apparent Loss + Real Loss _______________

4. TECHNICAL PERFORMANCE INDICATORS

Performance Indicators for Real Loss

Number of service connections ______________

Number of miles of main lines ______________

Service connections divided by miles of main ______________

Total Real Loss/Miles of Main/365 ______________

Total Real Loss/No. of Service Connections/365 ______________

5. FINANCIAL PERFORMANCE INDICATORS

Total Real Loss ______________

Production cost of water ______________

Total Real Loss multiplied by production cost of water: ______________

(Example from instruction sheet) Real Loss x $2.50/1000

Total Apparent Loss ______________

Retail cost of water ______________

Total Apparent Loss multiplied by retail cost of water: ______________

(Example from instruction sheet) Apparent Loss x $4.25/1000
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 WATER AUDIT WORKSHEET INSTRUCTIONS

This instruction guide is designed to aid in completing the Water Audit Reporting Form and
submitting the most accurate data available. This information will aid in determining which
operational areas may need assistance. A few general notes on the first section:
• List the Regional Water Planning Group in which the utility is located. This information
may be determined by using the website listed on the reporting form.
• Remember that the type(s) of source water used must total 100%.
• Use the web address on the reporting form to locate the mean income of population served.
The data may be obtained by metropolitan area, county, and/or zip code.
• Estimate the population the utility serves (this is not the number of service connections).
• Note the reporting period. Either a calendar or fiscal year may be used.
• Use consistent units in reporting the data, either million gallons or acre-feet.

1. System Input Volume

a. Water Delivery – Includes all water pumped, produced, or obtained through
interconnects and purchased water. This is the sum of all master or source meters
for the year.
Example:
Water Delivery is 8,983,674 gallons

b. Master Meter Accuracy - Is achieved by calibrating the master or source meters

to determine the accuracy level expressed as a percentage.
Example:
Water Meter Accuracy is 96%.

c. Corrected Input Volume- Is obtained by dividing the Water Delivery by Water

Meter Accuracy and multiplying by 100.
Example:
8,983,674 ÷ .96 = 9,357,993

d. Master meter adjustment - Is obtained by subtracting Water Delivery from the

Corrected input volume.
Example:
9,357,993 – 8,983,674 = 374,319

Note: If meters are over registering, divide Water Delivery by 1.03, if the meters
are 103 percent accurate and subtract the adjustment due to the over registering
of the meter. The master meters have registered more water than the actual
pumped amount.

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2. Authorized Consumption
a. Billed Metered – All water sold that has been metered.
b. Billed Unmetered – All water sold but not metered; can be an estimate.
c. Unbilled Metered – Unbilled water but is metered. Enter all metered flushing
here.
d. Unbilled Unmetered – Unbilled water that is not metered. Enter all unmetered
flushing here.
Note: Authorized Water Usage may be subtracted from the Corrected Input Volume to obtain
Total Water Loss for the year.

Corrected Input Volume - Authorized Water Usage = Total Water Loss

3. Water Loss
A. Apparent Loss
a. Customer Meter Under Registering –If customer meters are 98% accurate, that
means the meters are 2% under registering. Simply divide the Total Water Sold
by accuracy level of meters.
Example:
Total Water Sold that has been metered = 7,125,000 million gallons

7,125,000 ÷ .98 = 7,270,408 gallons

7,270,408 – 7,125,000 = 145,408, gallons not recorded by meter.

Note: If meters are over registering by 4 % then divide Water Delivery by 1.04 and
then subtract that amount.

b. Billing Adjustments/Waivers – Amount of water that was waived during the audit
year.
Example:
If the utility waived 28,000 gallons due to leaks on the customer’s side
during the year, 28,000 would be entered.

c. Unauthorized Consumption – Estimate amount of water lost due to theft.

Example: If a customer moved into a new home and began to use water without
authorization.

B. Real Loss
a. Tank Overflows - Amount of water lost due to storage overflows.
b. Main Leaks/Breaks – Amount of water lost through main leaks and breaks.
c. Customer Service line Leaks – Amount of water lost through service line leaks.

Real Loss estimates should be as accurate as possible.

Note: The sum of Total Water Loss and Authorized Consumption equals
Corrected Input Volume.

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12
4. Technical Performance Indicators
Performance Indicators are quantitative measures of key aspects within the utility. With
the use of these indicators, each utility will have a history to track performance.

The first formula is Total Real Loss/Miles of Main/Day.

1. Use the Total Real Loss number from the reporting form, then divide by
2. Miles of Main lines, then divide by
3. 365 (days in a year)
4. Record this number where indicated.

The second formula is Total Real Loss/No. of Service Connections/Day

1. Use the Total Real Loss number from the reporting form, divide by
2. Number of Service connections, divide by
3. 365 (days in a year)
4. Record this number where indicated.

5. Financial Performance Indicators

1. Value of Current Real Loss

Example
Total of Real Loss = 1,625,394 gallons
$2.50/1000 = production cost

1,625,394 x $2.50/1000= $4,063.50

$4,063.50 (Value of Real Loss /year)

2. Value of Current Apparent Loss

Example
Total of Current Loss = 189,408 gallons
$4.25/1000 = retail rate

189,408 x 4.25/1000= $805.00

$805.00 (Value of Current Apparent Loss/year)

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WATER BALANCE

Below is an example of a water balance with the terms as presented in this manual.

• Authorized Consumption and Water Loss equal Water Exported and Water Supplied
• Billed Authorized Consumption equals Revenue Water equals Billed Exported Water, Billed
Metered Consumption and Billed Unmetered Consumption.
• Apparent Losses and Real Loss equal Water Loss.
• Unbilled Authorized Consumption, Apparent Loss and Real Loss equal Non-Revenue Water.

Water Billed Water

Exported Billed Exported

Own Authorized Authorized Revenue

sources
Consumption Consumption Water Billed Metered

Input Water Billed Unmetered

Volume Supplied Unbilled Unbilled Metered
Authorized
Consumption Non Unbilled Unmetered
Apparent Revenue Unauthorized
Consumption
Purchased Water Loss Water Customer Meter
Inaccuracies
Water Loss Real Leakage on Mains

Loss Leakage and

Overflows/Storage
Leakage on Service
lines

PERCENTAGES vs. VOLUME OF WATER

How well is the utility managing their water? Currently, the industry uses a method to determine water
loss by using a percentage based on water sold to water billed that is unable to show where in the system
the loss is occurring and/or how much the loss cost the utility for the year. Under this percentage method
of water loss, the utility is guessing where to spend time and money, almost trying to diminish their water
loss by trial and error. Percentages do not associate a volume or a cost to the lost amount, nor do they aid
the utility in determining where to focus their resources. Without associating a cost or method to determine
where the loss is coming from, the utility cannot expect to effectively diminish cost while conserving a
natural resource that is vital to life.

In the past, water loss was only one category. That practice prohibited the utility from pinpointing loss.
Now water loss has two subcategories, apparent loss and real loss. They associate volumes of water with

14
either a retail cost or production cost which enable the utility to focus available resources where they are
most effective. If apparent loss is the main source of loss, then focused efforts should be on minimizing
theft, reviewing accounting methods, and implementing meter testing and replacement programs. If real
loss is the main source of loss, then implementation of leak detection programs and a thorough review of
the distribution system should occur.

WATER LOSS AUDIT PROGRAM

After conducting a top down water audit the utility must develop procedures needed to increase overall
efficiency of the utility, and explain how each category fits into the overall understanding of a water loss
program. When the utility considers water loss to be high, the first step is to develop a systematic plan that
reduces the volume of loss to an acceptable level. As with any business, both short term and long term
plans need to be achievable. Estimated costs should be developed and included for each plan.

IMPORTANCE OF METERS

All meters within a system are important because they record water flow and provide data that determines
water loss and revenue. Some utilities may elect not to meter certain connections. Whether they are city
offices or commercial properties, it is impossible to accurately determine water loss volume when there is
not a meter on that particular connection to verify volume of use. Not only is the utility unsure of the
volume of water used by that customer, but they are also unsure if any water loss is occurring between the
point of connection with the utility’s pipe and the customer’s pipe, thereby creating more inaccurate data.

Master Meters
Correct installation of production meters is important to maintain accuracy. Most manufacturers
recommend that meters be installed on only straight runs of pipe. A total of at least ten and preferably
fifteen pipe diameters of straight pipe should be in front (upstream side) of the meter, and there should be
ten diameters on the downstream side of the meter. Correctly interpreted, this would mean that 4 inch pipe
would need 10 times that number of straight pipe. Meter companies have charts that list accuracy limits
for each size and type of meter. For meters with high gallons per minute flows, it is even more critical that
they maintain high accuracy.

Due to the volume of water passing through these meters, it is recommended that meters 2 inches and larger
be calibrated every year. Meter testing, calibration and replacement programs are strongly recommended.
Utilities not calibrating master meters for Master Meter Adjustment may be putting water into the
distribution system that otherwise would be considered loss.

For example: The utility reads all source meters for the entire year and sums them to get a System
Input volume of 1,000,000 gallons, but as the utility combines Authorized Consumption with Total
Water Loss, the sum is only 900,000. Therefore, they believe that they are 100,000 gallons off on
some of their estimations, when in actuality they are off by 200,000 gallons, because of the master
meter is under registering by 100,000. Remember that Authorized Consumption plus Total Water Loss
must equal Corrected Input Volume, not System Input. After determining meter accuracy by
calibrating or verifying the flow to the master meters, the utility would either add or subtract the
number of gallons to the System Input, depending on whether they are under or over-registering. The
addition or subtraction of Master Meter Adjustment to System Input will achieve Corrected Input
Volume. It is so important to eliminate all possible inaccuracies within the utility. The calibration can
be conducted at the end of the utility’s business cycle each year, corresponding with the year-end audit.
The timing of this procedure would also ensure that the meters are accurate for the beginning of the
new business cycle.

15
Correct meter application is as important as meter accuracy. Meters are sometimes installed according to
the pipe size in the ground without considering whether the meter size matches the demand. This example
could be applied for a residence on a large tract that is being irrigated by a sprinkler system.

A 2 inch turbine meter will read water moving from 2 to175 gpm. If the use is 160 gpm for 2 hours
per day, but the majority of its use it is only reading 5 to10 gpm, then this particular meter is being
used too close to its design limits. Because compound meters have two meters side-by-side and are
designed to read low flows and high flows, they would be more effective in this example. Small
residential 5/8 x 3/4 meters should be installed with either a 5/8 or 3/4 line. The same rules apply to
large meters; a 4 inch meter should be installed on a 4 inch pipe. If the 4 inch meter is installed on a
smaller pipe, then the water flow and pressure has changed and this application will cause the water to
be recorded inaccurately. Look at the entire system to ensure meter installations are correct for each
application. Installation of accurate metering will save significant revenue and is worth the time
invested. Meters should be able to accurately record the full range of expected flow rates.

Residential Meters
Residential meters, record management and theft are the three sub-categories that make-up the category of
Apparent Loss. Apparent Loss is a volume of water that is associated with the utility’s retail rate, because a
utility would have received compensation for the water had it been recorded. Meters are cash registers, and
it is in the best interest of the utility to implement programs that are designed to maximize the efficiency of
these meters.

Depending on water chemistry and customer use patterns, residential meters may need to be replaced when
they “roll over” or when they reach 8 to 10 years old. Accounting software can be purchased that will
notify staff when meter limits are reached. Meter replacement programs can be implemented by reviewing
each meter’s age throughout the utility, replacing the oldest first. Last in, first out (LIFO), is a marketing
term that can be used with these programs. Once these programs are implemented, it may take time to see
revenue increases and/or water loss volumes diminish.

Proper meter selection begins with knowing the authorized water use of each end user. Large subdivision
builders will often hire subcontractors to install meters and the final inspection is then conducted by the
managing utility. However, after the homeowner occupies the residence, the initial meter application may
change. The homeowner may install irrigation systems that exceed the limits of the current 5/8 meter.
This new application now causes the meter to inaccurately register an unknown percentage of water. The
majority of residential meters will read predominantly in the customer’s favor, which can result in lost
revenue for the utility. The utility needs to know the operating limits of each type of meter being used
within the system so that the correct meter can be installed for each application. The cost to initiate and
maintain a meter replacement program can be outweighed by the benefits of initiating such a program.

The accuracy level of any customer meter is just as important as that of the master meters. Water
chemistry along with age can affect the accuracy of meters. Under normal operating conditions, residential
disc meters are calibrated to read from 1/4 of a gallon to 20 gpm, with a continuous flow of 8-10 gpm.
Different brands of meters may have different life expectancy. Inaccurate customer meter problems are
twofold, the total volume of apparent loss will be inaccurate and lead to more estimates in the total water
loss equation; as a result, utilities will not receive the compensation otherwise due to them.

After implementation of a meter replacement program, the utility may see an increase in phone calls
requests for meter verification, as users may report that; “it’s impossible that I used that much water.” The
utility may have to explain that the volume of water consumed may not have increased, but the water is
now more accurately accounted for due to the meter replacement program. Accounting for all water should
be the number one priority for the utility. Implementation of meter replacement programs will not only
show a decrease in apparent loss, but, an increase in revenue.

16
Record Management and Billing
This is the second sub-category within Apparent Loss. The information obtained from a utility’s meter and
billing system is vital to many parts of its operation. Peak summer demand, changes in water use patterns,
rate design, design information, and system stability all depend on accurate and current records. Good data
management, including metered uses and billing records, provide record of the utility’s past performance
and future potential revenue.

Accounting errors can present challenges for the utility. Examples of these challenges include: non-billing
or accounting of every connection; data incorrectly transferred on meter readings; and customer water
usage data being altered during the billing cycle. A prime example is when the utility changes the amount
billed or waives a portion of the water used due to a leak or some reason. Where within the billing records
did the unbilled water go? Even though the billing department chose to waive the volume of water for
customer satisfaction, follow the volume through the billing program to ensure that it does not become a
real loss or the volume is not lost altogether. It is considered an apparent loss because the meter did record
the volume of water.

Another administrative practice is to verify that the retail “tier structure” is billed correctly and generating
the appropriate revenue. This can be done by reviewing a percentage of bills and calculating the usage by
the individual revenue tiers to ensure the billing program is calculating the consumption to the right
revenue tier. A utility may want to verify this with several bills having different amounts of water
consumption so that the utility can have a high confidence level with the billing software.

Theft of Service
This is the third sub-category of Apparent Loss. It is considered Apparent Loss because it was in the
distribution system ready to sell. However, it was taken before the water had an opportunity to go through
a meter and generate revenue. Theft of water can occur by construction companies tapping into fire
hydrants, and/or unauthorized connections by residential customers. One method for theft is for the utility
to install a meter on a given hydrant and to have the water truck circumvent the system by hooking up to
the hydrant side that does not have a meter on it. Some utilities have begun to charge a rental fee for
supplying meters that would cover the rental cost plus the cost of selling the water. The price needs to be
set high enough to pay for an estimated amount but not too high to consider taking water from the other
side. Rental agreements can offset costs of others taking water without proper authorization. A utility can
also create a program that entails labeling all fire hydrants and working with local law enforcement
officials to notify them of unauthorized activity on fire hydrants. Some utilities attach a sign to the hydrant
that states, “Unauthorized users will be prosecuted.”

Illegal taps are more likely to occur where a customer may be able to install a separate tap to irrigate a lawn
or water livestock without being seen by neighbors. In order to eliminate theft when an account is closed,
the utility could choose to remove the meter instead of turning the valve off or locking the valve closed.

Meters, record management and theft of service are all part of Apparent Loss. They all consist of accurate
measurement of a loss and recorded so that the utility would have received compensation. Since the loss of
this water occurred at or after the customers meter it will have a retail cost associated to it.

Main Line Leaks, Service Line Leaks and Storage Tank Overflows
These are sub-categories within Real Loss and because the water did not go through a customer meter, the
lost volume is associated with a production cost. Except for storage tank overflows, these sub categories
are generally expensive and time consuming due to the difficulty in locating and repairing the leaks. They
are considered real loss, because, as previously discussed, real loss is all the water that went through the
master/source meters but has not gone through a customer’s meter. Since this is “produced” water, it is
calculated at a production rate. In order to more accurately track hydrant flushing, the utility could
implement the use of a diffuser with a pressure gauge that measure flow by pressure.

17
When development occurs and the utility takes on more connections, the number of service line leaks also
increase. A study done in Great Britain concluded that systems having more than 32 connections per mile
had the majority of their leaks on the service lines and utilities with less than 32 connections per mile had
the majority of their leaks on the main lines. This study occurred on systems that fully implemented this
water loss methodology.

METHODS TO LOCATE AND MINIMIZE WATER LOSS

This section shows how a utility can utilize several water loss techniques to locate loss within the system
and conduct a bottom up audit. As discussed earlier, this type of audit is verifying that the data used is the
most accurate and current possible. Bottom up audits are the next step for utilities wanting to achieve a
higher level of efficiency. They highlight issues within the utility that are preventing the utility from
effective loss control. In performing the audit, billing procedures, maintenance costs and productivity
levels can be reviewed. With time, financial rewards will be realized, along with substantiated water
savings, essentially eliminating the need to look for more water.

System Investigation
System investigation requires extensive knowledge of the utility’s infrastructure; therefore appropriate staff
should be chosen to conduct this study. Items that should be studied include, but are not limited to:
1. Types of storage tanks and stand pipes.
2. Is there an interconnect with another utility? Make sure they have properly installed check
valves.
3. Is the utility aware of the location of all valves?
4. Does the same booster pump come on first every time? Equipment longevity can be extended
if a different pump starts each time.
5. Is the utility implementing the use of forms for the fire department (Form C), line flushing
form (Form D) and the leak repair summary report (Form E)?
6. What type of pipe is in the ground (i.e. PVC or iron)? Note the size of each. This information
can be applied to the pin maps.
7. Are all meters the right size for each particular connection?
8. Residential meters should be 5/8 x 3/4 inch or similar. Are they installed correctly?
9. If they are close to reaching their operational limits, has their flow accuracy been tested?
10. Does the entire field staff know the system thoroughly?

Meters should have check valves and/or backflow prevention devices. These will prevent household water
from re-entering the utility’s main lines. Meters allow water to flow in the opposite direction. Due to
pressure differences between the outside plumbing and inside plumbing, lawn and garden chemicals from a
hose-end sprayer could enter the house plumbing if anti-siphon devices are not used on the outside faucets.

After this particular study, the utility should create a Utility Operations Manual that includes all the above
information. The operations manual can be used by all staff during emergencies and when key personnel
are out of the office for extended absences. Once the utility has done all the steps suggested here, the
creation of pin maps will be the next step in minimizing water loss.

Pin Maps
Pin maps show the entire infrastructure from the meters and valves to all service and main lines. Pin maps
can be created using Geographic Information System (GIS), or by an engineer. By using GIS, the map may
be periodically updated with relatively small cost. The map should be large enough to show the entire
system, so that all staff members can refer to it at any time. Historically, they were referred to as pin maps
because of the color of pin that is placed on the map. For example, red indicated service line leaks, blue for
main leaks and other colors for each scenario that may arise. Each task should be represented by its own
color. It is imperative that the map be updated frequently. Even if the utility has this map electronically, it
is important that all leaks and repairs to the infrastructure are updated. Pin maps are an important asset to
18
the utility and may aid in justification for replacing sections of old, leaking pipe. Having a map with
clusters of pins appearing on a particular section can indicate the need to replace the section rather than
repair it with another clamp. The map may be used as a visual aid to justify expenses to the board of
directors.

Distribution Controls
These are factors controlling the overall distribution system. Is Supervisory Control and Data Acquisition
(SCADA) installed on the system? SCADA systems can be used to manage many aspects in the utility’s
day-to-day operations. They also maintain pumping and pressure controls and will even monitor storage
tanks. They can be programmed to control many operations that can give staff more time for other
projects, alleviating the need to hire additional staff.

Water Leak Survey

These surveys are part of the leak detection program. Have a staff meeting on water loss with all field
personnel and gather input while prioritizing their ideas and/or locations of water loss in the order of
importance. If the utility does not already use a form for the estimation of these leaks, use Form E for a
template. Note all points of water loss on the pin maps, and refer to the map when fieldwork begins.
Develop a water loss program. Don’t rely on customers to report leaks. Make an effort to discover the
leaks before they cost the utility more money.

Leak Detection and Repair

To be effective, leak detection and repair should be a continuous program. Even as recordkeeping is
improved and meters are being installed, tested and replaced, the utility should be aggressively involved in
leak detection and line repairs. Form A, the LEAK DETECTION AND REPAIR WORKSHEET, is a
useful document to aid in maintaining a successful leak detection program.

In addition to saving the water lost through leakage, a leak detection program can pay for itself in reduced
water production costs, reduced future repair costs and deferred plant expansion, except when the water
loss from the system is very low. As each leak is being repaired, the repair crew can implement Form B,
the LEAK DETECTION SURVEY DAILY LOG, to aid in prioritizing leaks.

Studies have generally shown that the life of a leak often depends on the type of subsoil. In areas with
sandy soil or limestone strata, water from a leak may not surface near its source or may not surface at all.
Clay soil is considered impermeable and will normally keep water from going deeper and into the next
lower strata, but this may not always be the case

An ongoing leak detection program is essential. Leak detection methods include using a variety of flow
measurement devices. Sonic and acoustic devices are used to detect leak sounds in mains or service lines.

Acoustical leak detectors consist of headphones and a ground microphone. They are practical, inexpensive
and easy to use. Referred to as leak finders, they will find the leak within a range of several feet. As with
most acoustical equipment, an estimate of the leak location is needed. This type of listening device tends to
be lightweight and easier to use than others types of leak detectors.

As the utility implements a leak detection program the first leaks located will be the larger ones. The
process should be repeated in order to locate the smaller leaks that were not heard due to the background
noise of the larger leaks.

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Correlators
Correlators are known in the industry as leak pin pointers, as they are able to locate a leak within several
inches. This accuracy enables a utility to save money by only removing a small section of pavement.
Correlators use two transmitters to locate leaks. Once programmed with the correct parameters. The
correlators will transmit information to the logger, which indicates the leak location. Some utilities use
acoustical detectors to find the leak, and then employ correlators to pinpoint it within inches. They will
only be as accurate as the information programmed into the device. One method used by large
municipalities to offset the expense of correlators, is to purchase them and then subcontract out to smaller
systems.

Meter Testing
Due to rising labor costs, efficiency matters concerning testing experience, and quality control issues, many
utilities now pay outside testing firms to conduct all their tests. TWDB has ultrasonic flow meter
verification equipment available for free 30-day loans. This equipment is used to verify flow from
source/master meters and determines the need for meter calibration.

Residential meters can be tested while they are still “in-line.” Obtain a new meter and attach meter spuds
or tails that allow it to be connected to a garden hose. To verify flow, lay the garden hose meter next to the
“in-line” meter and turn the faucet on and watch both meters simultaneously. If the in-line meter is
inaccurate, make note of the difference and then go to the next house and repeat this procedure. If testing
all meters is not possible, a 5-10 percent sample test can represent the entire system. Some meter
companies also sell portable testing equipment that can be used in the field.

While testing the meter, ensure that it is not only installed correctly but that it is the correct meter for the
application. Meter size is also an important aspect of meter accuracy. Verify that each meter size is
appropriate to the size of the service line so that a residential 5/8 x 3/4 inch meter is not installed on a 1 or
1.5 inch line. Apply the same principle to a 4 inch meter so that they are not installed on pipe larger or
smaller than the meter. If the water pressure increases as water flows into the meter or is constricted thus
increasing the flow rate of water, then the installed meter has inaccuracy potential.

Distinct Management Area (DMA)

Distinct Management Area (DMA) is a proven method implemented by closing valves and isolating
sections of the system during nighttime hours. This method is conducted by isolating a section of pipe,
installing a meter at the entry valve and then closing the valve on the end of the section. By doing so, the
only way for water to escape is through the customer’s meters. In the morning, read the large meter at the
valve to see if significant volumes of water registered. For the test to be most effective, it should be done at
night to eliminate large water usage or at least minimize the use. Reading the meter at different times will
determine leaks on that section and the volume of water lost. Conducting this procedure throughout the
system will help prioritize starting points for the leak detection program. Although leaks that never come
to the surface are more difficult to find, they can be located. Leakage rates may also be estimated by using
Table 1. Residences generally have a low consumption rate at night. To ensure accuracy, notify each
affected customer by placing flyers on their door so that water use may be kept to a minimum.

Utilities should also monitor pumping stations at night to see if the pumps are staying on longer than
normal, another possible leak indication. Monitor the booster pumps, as a loss of pressure is another
indication of water loss. Determine if the pressure loss is for one day, or if it has been consistent for
several days or weeks.

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Pressure Management
Excessive pressure exerted on the infrastructure can maximize wear and increase water consumption on the
system as a whole.

Pressure Management implementation will;

• Reduce wear and tear on booster pumps and pressure relief valves (PRV)
• Lessen pressure exerted on infrastructure
• Lessen pressure on meters and customer’s plumbing
• Reduce water consumption at customer side
• Reduce water loss through leaks in the system when lower pressure is used.

The volume of water being forced out of a leak at 100 psi is greater than at 65 psi. Higher pressures also
exert more wear on a system, thereby conserving water when evenly lowering the pressure throughout the
system.

PERFORMANCE INDICATORS (PI)

These are indicators that measure utility efficiency in a particular area of operation, whether the utility is
measuring performance of employees, line loss or pumping station capacity. There are PIs for every aspect
of the operation. Not only will indicators show how efficient the utility is today, but they also establish a
history or benchmark that can be used for comparison next year or next month. PIs are designed to assist
the utility in achieving a higher degree of efficiency. PI’s are designed so that different aspects are divided
into each other to establish benchmarks. Below are two examples:

Total Real Loss/Miles of Main/Day

1. Use the Total Real Loss number from the reporting form, then divide by
2. Miles of Main lines, then divide by
3. 365 (days in a year)

Total Real Loss/No. of Service Connections/Day

1. Use the Total Real Loss number from the reporting form, divide by
2. Number of Service connections, divide by
3. 365 (days in a year)

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CONCLUSION

Water loss is not “rocket science” however; the utility should carefully examine that one really needs to
ponder every aspect of a utility to identify the main areas of water loss.

When the utility begins to implement water audits into their business plan, they can expect to become more
efficient by focusing on problem areas that were identified by the top down audit. With water availability
decreasing and rising water treatment costs, this type of audit will become more widely used. As utilities
become more aware of the issues that affect water loss, they will be able to address and diminish water loss.

Audits are designed to guide the utility to the appropriate category of water loss so that the utility can focus
its resources on specific areas of water loss, thereby utilizing its resources effectively. By minimizing
water loss the utility will effectively diminish its need to locate additional water sources. It should be noted
that real loss represents a wasted resource as the utility has spent financial resources on the production of
this water. Minimizing water loss may minimize the search for future water resources to meet demand.

By using this methodology, along with the implementation of audits in the utility’s operations; the utility
should have an incremental drop in water loss each year. As with any business plan, it will take several
years for utilities to begin to see the effects of implementing this procedure. Therefore, goals should be
long term but certainly achievable.

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RESOURCES

Julian Thornton, WATER LOSS CONTROL MANUAL. McGraw-Hill

Helena Alegre, Wolfram Hirnir, PERFORMANCE INDICATORS FOR WATER SUPPLY

SERVICES. IWA Publishing.

Andrew Chastain-Howley is a Water Loss Control Specialist with Water Prospecting and Resource
Consulting (WPRC) based in Fort Worth, Texas. WPRC is an international water resource consultancy
with worldwide experience in the assessment, management and reduction of water system losses.

Julian Thornton is an international water loss specialist with 25 years experience and author of “The
Water loss Control Manual” by McGraw Hill. He is a Team Leader for International Water Association
(IWA) and is the past Vice Chair for American Water Works Association (AWWA) Water Loss Control
Committee. Mr. Thornton is currently chairing the AWWA M36 rewrite committee and is actively
working on several AWWA Research Foundation water loss control projects.

George Kunkel P.E. has worked for the Philadelphia Water Department for nearly 25 years and has
chaired the city’s Water Accountability Committee for over ten years, overseeing efforts that have resulted
in a reduction of over one-third of the city’s non-revenue water. Additionally, he has chaired the Water
Loss Control Committee of the AWWA and has been actively involved with a number of other water loss
projects sponsored by AWWA and the AWWA Research Foundation.

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 Form A
LEAK DETECTION AND REPAIR PLAN WORKSHEET

Utility Name: _____________________________________Date:________________________

A. AREA TO BE SURVEYED

1. The area in the distribution system to be surveyed should be mapped using the
results of the water audit. Higher priority should be given to areas with high leak
potential. (Items to consider include records of previous leaks, type of pipe, age of
pipe, soil conditions, pressures, ground settlement and installation procedures.)

2. Estimate the total miles of main to be surveyed (excluding service lines).

3. Estimate the average number of miles of main to be surveyed per day.

4. Describe the equipment and procedures that will be used to detect leaks.

5. Estimate the number of working days needed to complete the survey.

B. PROCEDURES AND EQUIPMENT

1. Experience has shown that the best results have been obtained by listening for leaks
at all system contact points such as water meters, valves, hydrants and blow-offs.

2. The average two-person survey crew can survey about two miles of main per day if
the main is located in a city or subdivision and all valves, hydrants and meters are
checked.

3. Items to consider include distances between services, traffic and conditions and
total number of listening points.

4. If not to listening for leaks at all available listening points, what plans will be made
for checking missed points later? A portable listening device, field notebook,
hammer, screwdriver, flashlight and cover key are essential items. The leak
surveyor should note broken valves, hydrants, meters or other unserviceable
equipment in addition to location, size and type of leak or other water loss
condition observed.

5. Describe how the leak detection team and the leak repair crew will work together.
A leak is normally reported by a citizen or utility employee who sees the water
leaking out of the ground or building. The leak detection team should be called in
first or at the same time as the repair crew to pinpoint the leak. In other cases, the
leak detection crew might discover a leak, pinpoint it and initiate the work order.

6. What measures will be used to minimize the chance of digging “dry holes”?

25
 7. Describe the methods that will be used to determine the flow rates for excavated
leaks. Formulas for calculating approximate flow rates for typical leaks are
presented in Figure 1.

C. LEAK DETECTION SURVEY BUDGET

Number of
days $/day Cost
Utility Crew Cost

Consultant Crew Cost

Vehicle Cost

Cost of Leak Detection Equipment

Supervision and Administration

Other Costs

Total Estimated Costs

D. LEAK SURVEY AND REPAIR SCHEDULE

Indicate realistic, practical dates.

Start Dates Completion Dates

Phase 1
Area 1 Area 1

Area 2 Area 2

Area 3 Area 3
Phase 2
Area 1 Area 1

Area 2 Area 2

Area 3 Area 3

Prepared by ____________________________ Date _____/_____/_____

Title ______________________________________________________

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 Form B
LEAK DETECTION SURVEY DAILY LOG

Date:______________ Crew:_____________________ Survey Time:_____________________

Area:___________________________ Vehicle:______________________________________

Weather:_____________________________________________________________________

Starting Address:_________________Ending Address: ________________________________

Route:_______________________________________________________________________

Miles Surveyed:_______________________________________________________________

Brief Description of Each Leak Discovered / Suspected (Size and Location):

1)

2)

3)

4)

5)

6)

Notes:

Signed (Crew Chief):

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28
 Form C
WATER FOR FIRE FIGHTING AND TRAINING

FIRE DEPARTMENT NAME:

CITY OR SYSTEM NAME:

MONTH: TANK SIZE: (gal)

1 16

2 17

3 18

4 19

5 20

6 21

7 22

8 23

9 24

10 25

11 26

12 27

13 28

14 29

15 30

31

MONTHLY TOTAL:

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30
 Form D
LINE FLUSHING REPORT

Date Location GPM Time Gallons

Total Gallons

Remarks:

Signature:

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32
 Form E
LEAK REPAIR SUMMARY REPORT

By: Date:

Work Order #: Crew: Date Completed:

Area/Location:

Found per Leak Detection Survey (Attached)?

LEAK TYPE PIPE MATERIAL

Meter Leak Fire Hydrant Galvanized Iron A.C.P.
Meter Spud Meter Yoke Black Iron Steel
Valve Joint Ductile Iron PVC
Curb Stop Main Cast Iron Copper
Service Other Polybutylene Transite

OTHER INFORMATION

Depth to top of pipe __________(ft) Type of bedding _________ Type of backfill __________
Leakage Rate _________(gpm) (___Measured ____Estimated) Estimated age of leak ________
Estimated water lost __________(gal) Previous repairs? _______________________________
How was leak repaired (previous/this time)?_________________________________________
_______________________________________________(Attach “Before” and “After” Photos)
Shape and dimensions __________________ Original wall thickness of pipe ___________(in)
System Pressure Measured ____________? Corrosion ______? Outside _____ Inside ________

COST OF REPAIRS
Labor Costs:
Total hours worked ___________ x Average hourly rate $ ______________ = $_____________

Equipment Cost:
Equipment Used Hours Used X Cost of Equipment = Total Equipment Cost
1) X $ = $
2) X $ = $
3) X $ = $
4) X $ = $

Material used Cost $

Administrative/Supervisory/Other Cost $
Total Cost of Repairs $
Follow-up listing test? (date) OK?

Supervisor’s Signature

33
Table No. 1 Leak Rates from Holes of Known Size

Gallons per Minute (gpm)

Area of Leak Pressure Pounds per Square Inch (psi)
Square Inches 10 20 40 60 80 100
0.005 0.5 0.8 1.1 1.3 1.5 1.7
0.010 1.1 1.5 2.2 2.6 3.1 3.4
0.025 2.7 3.8 5.4 6.6 7.6 8.5
0.050 5.4 7.6 11 13 15 17
0.075 8.1 11 16 20 23 26
0.100 11 15 22 26 31 34
0.200 22 31 43 53 61 68
0.300 32 46 65 79 92 102
0.400 43 61 86 106 122 136
0.500 54 76 108 132 153 171
0.600 65 92 129 159 183 205
0.700 76 107 151 185 214 239
0.800 86 122 173 211 244 273
0.900 97 137 194 238 275 307
1.000 108 153 216 264 305 341
1.100 119 168 237 291 336 375
1.200 129 183 259 317 366 409
1.300 140 198 280 343 397 443
1.400 151 214 302 370 427 478
1.500 162 229 324 396 458 512
1.600 173 244 345 423 488 546
1.700 183 259 367 449 519 580
1.800 194 275 388 476 549 614
1.900 205 290 410 502 580 648
2.000 216 305 431 528 610 682
2.500 270 381 539 661 763 853
3.000 324 458 647 793 915 1,023
4.000 431 610 863 1,057 1,220 1,364

The above table is based on the following formula:

Flow = 2.8 x Area x Square Root of (148 x Pressure)

Flow – gpm, Area – Square Inches, Pressure – psi

Example use of TABLE 1.

A hole 1/8 inch by 1 ¼ inch in size at 50 psi
First calculate the area:
1/8 inch = 0.125 inches, 1 ¼ inch = 1.25 inches, Area = 0.125 x 1.25 = 0.156 square inc
From the table, the size that is closest is 0.1 and 0.2 square inches, and the pressure is between 40
and 60 psi. The flow rate is going to be about 36 gpm.

34
 TEXAS WATER DEVELOPMENT BOARD’S
BROCHURES, LEAK DETECTION EQUIPMENT
AND
SERVICES HANDOUT

The Texas Water Development Board is a non-regulatory state agency that is set out to provide
many services to Water Utilities around the state. Several of these services are: providing
brochures, conducting Water Audit/Leak Detector Workshops, and loaning Leak Detectors and
master meter verification equipment free for 30-days.

The brochures we provide range in numerous topics including lawn watering, information about
your utility, water wise plants. Most of these are also available in Spanish. A complete list of
brochures can be found on our website,
http://www.twdb.state.tx.us/assistance/conservation/pubs.asp. We are able to send up to 500
brochures per year at no charge, to water utilities, river authorities and other types of
governmental agencies.

Water Audit/Leak Detector Workshops are available anytime of the year. This is a TCEQ
approved workshop which entitles each operator 4 hours of credit towards the renewal of their
operator’s license. This workshop discusses how a system can achieve maximum efficiency by
implementing a leak detection program and conducting a comprehensive water audit. The Texas
Water Development Board presenter will travel to your system and conduct the workshop; all
training materials necessary will be provided. The sponsoring system is responsible for providing
a training room and scheduling with other systems to ensure a class size of no less than 10
attendees to be eligible for this workshop. An agenda for the workshop and other relevant
information is available by contacting Mark Mathis, 512.463.0987 or by accessing our website,
http://www.twdb.state.tx.us/assistance/conservation/Municipal/Water_Audit/Leak_Detection/Leak
Detection_Workshop.asp.

Our free equipment, an Aquascope and Panametrics are both available for loan for 30-days. The
Aquascope is an acoustical sounding device that will help you determine where your leaks are
within your system. The device has headphones and a ground microphone; together they work
quite well in pinpointing your leaks and ruptured pipes. The Panametrics (an ultrasonic device)
works with transducers that are placed onto the pipe near your master meter. This equipment will
verify the flow rates going through your master or source meters.

Once again, all of this information is provided to you without cost to your utility. To implement
one or all of these services, call Mark Mathis at 512.463.0987 or access our website at
www.twdb.state.tx.us/assistance/conservation/consindex.asp.

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