Every year, billions of litres of treated water disappear before reaching customers.
If you’re responsible for managing water networks, you know the pressure.
Budgets are stretched, regulators demand accountability, and the public expects reliable service.
Understanding the causes of non-revenue water (NRW) is the first step toward regaining control.
Keep reading to learn the key causes of NRW and how addressing them now can save millions in losses and protect community trust.
Main Causes of Non-Revenue Water
Non-revenue water has several underlying causes, and each creates challenges for utilities, councils, and engineers. By understanding these issues in detail, decision-makers can better plan investments, recover lost revenue, and protect water resources.
Leakage and Pipe Breaks
Leaks waste more water than any other cause of NRW, silently draining millions of litres each year.
They occur in three ways: small background seepage from joints or fittings, bursts caused by sudden pressure changes, and service connection leaks on smaller pipes.
While some leaks are visible, many remain hidden underground for years, quietly wasting millions of litres.
For utilities, this inflates pumping and treatment costs and accelerates asset deterioration. For councils, visible bursts can damage trust when roads flood or water supply is disrupted.
Investing in proactive water loss management, including active leak detection and pressure monitoring, can significantly cut these losses while protecting infrastructure.
Metering Inaccuracies
Meters are critical for accurate billing, but they are not always reliable.
Mechanical meters tend to under-record low flows as they age, while digital meters can drift or fail if they are poorly installed or maintained.
These inaccuracies mean that water delivered to customers may never appear on the bill, creating apparent losses.
For utilities, this results in lost revenue and unreliable consumption data. For councils, it complicates planning decisions and tariff setting.
Regular meter audits, timely replacements, and investment in modern smart metering systems can greatly improve accuracy and reduce these hidden losses.
Illegal Connections and Theft
Unauthorised connections bypass meters entirely, creating unbilled consumption that puts pressure on both networks and finances. These can range from small illegal household taps to larger commercial connections that draw significant volumes of water without approval.
For utilities, this reduces revenue and increases operational strain. For councils, it undermines public trust when paying customers feel they are subsidising theft.
Tackling this issue requires regular inspections, monitoring tools that flag unusual usage patterns, and community engagement programs that highlight the importance of fair and legal water use.
Data and Billing Errors
Not all losses are physical. Data and billing errors can make it appear as though water has vanished when, in reality, the problem lies in administration.
Faulty billing systems, errors in meter readings, or human data entry mistakes all create discrepancies that appear as non-revenue water.
While the water itself is not wasted, the financial and reporting impacts are real. Utilities face confusion when trying to locate actual leaks, while managers struggle to make confident investment or planning decisions.
By strengthening data validation processes, integrating systems, and training staff, utilities and councils can reduce errors and restore accuracy in their reporting.
Pressure Management Issues
Water pressure is vital for delivery, but poor control often contributes to NRW. High pressure places extra strain on pipes and fittings, leading to more leaks and bursts. Plus, inconsistent zones can also create operational inefficiencies and customer complaints.
For utilities, this means higher repair costs and shorter asset life. For councils, poorly managed pressure can increase the risk of visible bursts that frustrate communities and attract criticism.
Investing in controlled, consistent pressure management is a cornerstone of effective NRW Consulting. By stabilising pressure across the network, utilities can cut leakage, extend the life of infrastructure, and deliver a more reliable service to customers.
The Impact of Non-Revenue Water
The causes of NRW may differ, but the impacts are universal: lost money, wasted resources, and increased strain on utilities and councils. Understanding these consequences makes it clear why tackling NRW is a priority.
Financial Costs
Every litre of water lost represents both wasted treatment costs and missed revenue. Utilities spend heavily on pumping, treating, and distributing water, only for a portion to never be billed. For councils, this reduces the funds available for reinvestment in infrastructure and increases the pressure to raise tariffs or secure additional funding.
Operational Inefficiency
High levels of NRW make it harder for managers and engineers to run networks effectively. Leaks strain pumping systems, faulty data complicates demand forecasting, and frequent bursts create unplanned maintenance costs. This inefficiency shortens the life of critical assets and diverts resources away from planned upgrades.
Environmental and Sustainability Risks
Water scarcity is a growing concern across Australia and New Zealand. NRW wastes treated drinking water at a time when communities are being asked to use resources responsibly. For sustainability officers and councils, high losses undermine environmental goals and make it harder to meet ESG reporting requirements.
Community Trust and Accountability
Visible leaks, service interruptions, or reports of high NRW levels can damage public confidence. Ratepayers expect utilities and councils to manage resources efficiently. When they see water wasted or hear about theft and inaccuracies, it creates frustration and pressure on decision-makers to act.
How Aqua Analytics Helps Combat NRW
Identifying the causes of non-revenue water is only the first step. Lasting results come from targeted action, and this is where Aqua Analytics provides measurable value.
Our NRW Consulting services help utilities and councils understand their unique challenges and implement proven strategies. From developing water balances to pressure optimisation and leakage control, our experts design programs that reduce losses and recover revenue.
Through advanced water loss management techniques, we help detect leaks, monitor pressure zones, and optimise system performance. Our approach includes active leakage detection, district metered area (DMA) design, acoustic logging, and real-time monitoring to locate and fix problems faster.
We also deliver digital tools such as AquaNRW, a purpose-built software platform that combines pressure data, flow monitoring, and task management. This allows utilities to visualise their networks, identify high-risk zones, and track performance metrics like ILI, MNF, and leakage volumes with accuracy.
4. Proven Results
Across Australia and New Zealand, our work has delivered tangible outcomes, from millions of litres saved each year to financial returns that far exceed investment. In one project, our efforts achieved a 26x ROI, showing how quickly effective NRW management strategies pay off.
Take Action on NRW Today
Every day that leaks go undetected or data errors persist, utilities and councils lose both water and revenue. Left unmanaged, the causes of non-revenue water are more costly and more visible to the community.
At Aqua Analytics, we deliver proven results. Our services, from water loss management to NRW Consulting and AquaNRW software, give utilities the tools to detect losses, optimise pressure, and improve asset performance.
Reducing NRW is about more than saving money. It’s about protecting resources, improving reliability, and showing accountability to the communities you serve. Contact Aqua Analytics and start building a water network that pays for itself today.
