Untapped Potential: U.S. Water Efficiency Could Roll Back Decades of Waste

NEW YORK, NY – October 28, 2025 – A groundbreaking assessment released today by the Pacific Institute reveals that the United States is squandering a significant opportunity to address its growing water challenges. The report, titled “Untapped Potential: An Assessment of Municipal and Industrial Water Efficiency Potential in the United States,” demonstrates that readily available technologies and practices could reduce overall water use by 25 to 60 percent. This level of efficiency would effectively return the nation's water consumption to levels not observed in over half a century.

A Crisis of Waste and Opportunity

Water scarcity is no longer a distant threat but a pressing reality for many regions of the United States. Decades of population growth, coupled with aging infrastructure and increasingly unpredictable climate patterns, are straining water resources and exacerbating existing inequalities. While much of the discussion centers around building new dams and pipelines, experts suggest a more cost-effective and sustainable solution may lie in simply using water more efficiently.

“We’ve been focused for a long time on increasing supply,” says one source familiar with the report’s findings. “But the truth is, there’s a huge amount of water that’s currently being wasted – leaked from pipes, used inefficiently in industrial processes, or simply overused in landscaping.”

The Pacific Institute’s assessment focuses on municipal and industrial water use, highlighting areas where significant reductions can be achieved through relatively simple and affordable measures. These include repairing leaky infrastructure, implementing water-efficient technologies in manufacturing and power generation, and promoting water conservation in homes and businesses.

Economic Benefits Beyond Conservation

The economic benefits of increased water efficiency extend far beyond simply lowering utility bills. For businesses, embracing water-saving technologies can translate into reduced operating costs, improved resilience against drought, and a boost to their environmental reputation. Several industries are already leading the charge. The automotive, beverage, and manufacturing sectors are investing in closed-loop systems and advanced wastewater treatment, showcasing substantial savings.

“The initial investment can sometimes be a barrier,” explains one industry analyst. “But the long-term return on investment is often very attractive, especially considering the rising cost of water and the potential for regulatory changes.”

For municipalities, increased water efficiency can defer or even eliminate the need for costly new water supply projects, freeing up resources for other critical infrastructure improvements. This is particularly important for communities facing aging infrastructure and limited financial resources. Gilbert, Arizona, provides a compelling example, having saved hundreds of millions of dollars through its commitment to water conservation.

Addressing Equity and Access

Beyond the economic and environmental benefits, improving water efficiency also has important social equity implications. Reducing water consumption can lower household bills, making water more affordable for low-income families. It can also improve access to clean and reliable water in underserved communities.

However, realizing these benefits requires a targeted approach. “Simply reducing overall water consumption isn't enough,” says one advocate for water equity. “We need to ensure that the savings are distributed fairly and that vulnerable populations aren’t disproportionately impacted.”

This means investing in programs that help low-income households afford water-efficient appliances, providing financial assistance for water bill payments, and addressing systemic inequities in water access and infrastructure. Several states are piloting innovative approaches, such as tiered water pricing and water assistance programs, but much more needs to be done.

The report notes that the U.S. Geological Survey’s data, showing overall water withdrawals at levels not seen since the 1960s, highlights the remarkable potential for recapture and responsible management. These efficiencies also contribute towards a stronger, more stable infrastructure, less reliant on large-scale, environmentally impactful projects.

The Pacific Institute will host a webinar on December 4th to further discuss the findings and explore potential policy solutions. The goal is to shift the conversation from solely focusing on increasing water supply to prioritizing water efficiency as a key element of sustainable water management. The hope is that this new assessment will serve as a catalyst for change, inspiring policymakers, businesses, and communities to embrace a more water-wise future.