12 Most Important Water Management KPIs


The top KPIs are critical in water management as they provide measurable values that help organizations track and assess the efficiency and effectiveness of their water-related operations. These indicators enable managers to monitor water usage, identify areas for improvement, and implement strategies to conserve water and reduce costs.

By setting specific and relevant KPIs, companies can ensure compliance with environmental regulations and standards, which is crucial for sustainable operations and corporate responsibility.

This article showcases the Most Critical 12 KPIs for Water Management and Associated Benchmarks.

1. Total Water Usage

Total Water Usage is a critical KPI that reflects an organization's operational efficiency and sustainability efforts.

By monitoring this metric, companies can identify areas for cost control and resource optimization, ultimately influencing financial health and environmental impact. Effective management of water usage can lead to significant cost savings, improved ROI, and enhanced corporate reputation.

Organizations that prioritize this KPI can align their strategies with sustainability goals while ensuring compliance with regulations. Learn more about the Total Water Usage KPI.

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We have 40 benchmarks for this KPI available in our database.

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What is the standard formula?
Sum of Water Used in All Activities

2. Fresh Water Withdrawal

Fresh Water Withdrawal is a critical performance indicator that measures the volume of freshwater extracted for various uses, impacting sustainability and operational efficiency.

This KPI influences business outcomes such as regulatory compliance, cost control metrics, and resource allocation. Companies that effectively track this metric can improve their forecasting accuracy and strategic alignment with environmental goals.

By embedding this KPI within a robust KPI framework, organizations can enhance their data-driven decision-making processes. Learn more about the Fresh Water Withdrawal KPI.

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What is the standard formula?
Total Volume of Fresh Water Withdrawn

3. Wastewater Quality

Wastewater Quality is a critical KPI that reflects the effectiveness of treatment processes and the environmental impact of operations.

It influences regulatory compliance, operational efficiency, and public health outcomes. Monitoring this metric allows organizations to make data-driven decisions that align with sustainability goals.

High-quality wastewater management can enhance a company's reputation and reduce costs associated with penalties or remediation. Learn more about the Wastewater Quality KPI.

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We have 5 benchmarks for this KPI available in our database.

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What is the standard formula?
BOD Levels, TSS Levels, and Other Water Quality Indicators

4. Water Quality Monitoring Frequency

Water Quality Monitoring Frequency is crucial for ensuring safe drinking water and environmental sustainability.

It directly influences public health outcomes and regulatory compliance. Frequent monitoring allows organizations to track results effectively, enabling data-driven decision-making.

A robust KPI framework here can enhance operational efficiency and improve financial health by minimizing costly violations. Learn more about the Water Quality Monitoring Frequency KPI.

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We have 5 benchmarks for this KPI available in our database.

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What is the standard formula?
Number of Water Quality Tests / Time Period


Related KPI Categories

5. Water Compliance Incidents

Water Compliance Incidents serve as a critical performance indicator for organizations managing water resources.

This KPI directly influences operational efficiency, regulatory compliance, and financial health. High incident rates can signal underlying issues that may affect overall business outcomes, including increased costs and reputational damage.

Effective tracking and management of these incidents can lead to improved strategic alignment and better resource allocation. Learn more about the Water Compliance Incidents KPI.

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We have 3 benchmarks for this KPI available in our database.

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What is the standard formula?
Total Number of Compliance Incidents

6. Non-Revenue Water (NRW)

Non-Revenue Water (NRW) is a critical KPI for water utilities, reflecting the volume of water produced but not billed to customers.

High NRW levels can indicate inefficiencies in operations, impacting financial health and service delivery. Reducing NRW can lead to significant cost savings and improved operational efficiency, ultimately enhancing customer satisfaction.

Effective management reporting and strategic alignment around NRW can drive better business outcomes. Learn more about the Non-Revenue Water (NRW) KPI.

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We have 7 benchmarks for this KPI available in our database.

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What is the standard formula?
(Total Water Produced - Total Billed Water) / Total Water Produced


Related KPI Categories

7. Water Treatment Costs

Water Treatment Costs serve as a critical performance indicator for organizations managing water resources.

This KPI directly influences financial health, operational efficiency, and cost control metrics. By tracking these costs, companies can identify inefficiencies and optimize resource allocation.

A focus on water treatment expenses can lead to improved sustainability initiatives and compliance with regulatory standards. Learn more about the Water Treatment Costs KPI.

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We have 7 benchmarks for this KPI available in our database.

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What is the standard formula?
Total Water Treatment Expenditures

8. Water Supply Resilience

Water Supply Resilience is crucial for ensuring consistent access to clean water, which directly impacts public health and economic stability.

A resilient water supply system minimizes disruptions, thereby enhancing operational efficiency and safeguarding financial health. By focusing on this KPI, organizations can improve strategic alignment with sustainability goals and community needs.

Effective management reporting on water resilience can lead to better forecasting accuracy and informed decision-making. Learn more about the Water Supply Resilience KPI.

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We have 5 benchmarks for this KPI available in our database.

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What is the standard formula?
No standard formula; qualitative assessment.

9. Water Storage Capacity

Water Storage Capacity is a critical performance indicator that directly impacts operational efficiency and financial health.

It influences business outcomes such as resource allocation, cost control, and risk management. A well-optimized water storage system ensures that organizations can meet demand fluctuations without incurring unnecessary costs.

By tracking results, companies can improve forecasting accuracy and strategic alignment with market needs. Learn more about the Water Storage Capacity KPI.

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We have 4 benchmarks for this KPI available in our database.

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What is the standard formula?
Total Volume of Water Storage Facilities

10. Peak Water Demand

Peak Water Demand is a critical performance indicator that reflects the maximum water usage within a specific timeframe, influencing operational efficiency and financial health.

Understanding this KPI enables organizations to make data-driven decisions regarding resource allocation and infrastructure investments. High demand periods can strain systems, leading to increased costs and potential service disruptions.

Conversely, low demand may indicate inefficiencies or underutilization of resources. Learn more about the Peak Water Demand KPI.

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We have 1 benchmark for this KPI available in our database.

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What is the standard formula?
Maximum Water Use Recorded in a Specific Time Period

11. Average Daily Water Consumption

Average Daily Water Consumption is a critical performance indicator that reflects operational efficiency and resource management.

Monitoring this KPI helps organizations understand their water usage patterns, influencing cost control metrics and sustainability initiatives. By analyzing consumption trends, businesses can identify opportunities for cost savings and improve their financial health.

Effective management reporting on water consumption can lead to better forecasting accuracy and strategic alignment with environmental goals. Learn more about the Average Daily Water Consumption KPI.

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We have 8 benchmarks for this KPI available in our database.

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What is the standard formula?
(Total Water Consumption over a Set Period / Number of Days in the Period)

12. Water Footprint

Water Footprint serves as a critical performance indicator for organizations aiming to enhance operational efficiency and sustainability.

By quantifying the total volume of freshwater used to produce goods and services, it directly influences resource management and cost control metrics. Companies that effectively track their water footprint can identify waste, optimize processes, and align with regulatory requirements.

Improved water management not only boosts financial health but also enhances brand reputation among environmentally conscious consumers. Learn more about the Water Footprint KPI.

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We have 7 benchmarks for this KPI available in our database.

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What is the standard formula?
Sum of Water Consumed, Evaporated, and Polluted


Related KPI Categories


These 12 KPIs were selected from the Water Management KPI database to balance operational efficiency, environmental compliance, and resource sustainability. They combine leading indicators like Water Quality Monitoring Frequency with lagging metrics such as Water Compliance Incidents, offering a comprehensive view of water usage, treatment, and regulatory performance. This subset addresses both financial impact and system resilience, ensuring coverage across the water management lifecycle.

Track Non-Revenue Water (NRW) alongside Total Water Usage to identify losses in distribution efficiency—rising NRW with stable usage signals leakage or theft. Monitor Wastewater Quality relative to Water Compliance Incidents; increasing BOD or TSS levels paired with compliance breaches indicates treatment process failures. Compare Water Storage Capacity and Peak Water Demand to assess supply resilience—capacity below peak demand forecasts supply risk during stress periods.

Prioritize implementing Total Water Usage and NRW first, as these metrics rely on readily available operational data and reveal immediate inefficiencies. Follow with Wastewater Quality to ensure regulatory compliance and environmental impact control. The full Water Management KPI set, featuring expanded operational and financial metrics, formulas, and benchmarks, is accessible in the KPI Depot database.

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Related Best Practices


These best practice documents below are available for individual purchase from Flevy , the largest knowledge base of business frameworks, templates, and financial models available online.


KPI Depot (formerly the Flevy KPI Library) is a comprehensive, fully searchable database of over 20,000+ KPIs and 30,000+ benchmarks. Each KPI is documented with 12 practical attributes that take you from definition to real-world application (definition, business insights, measurement approach, formula, trend analysis, diagnostics, tips, visualization ideas, risk warnings, tools & tech, integration points, and change impact).

KPI categories span every major corporate function and more than 150+ industries, giving executives, analysts, and consultants an instant, plug-and-play reference for building scorecards, dashboards, and data-driven strategies.

Our team is constantly expanding our KPI database and benchmarks database.

Got a question? Email us at support@kpidepot.com.



Each KPI in our knowledge base includes 12 attributes.

KPI Definition

A clear explanation of what the KPI measures

Potential Business Insights

The typical business insights we expect to gain through the tracking of this KPI

Measurement Approach

An outline of the approach or process followed to measure this KPI

Standard Formula

The standard formula organizations use to calculate this KPI

Trend Analysis

Insights into how the KPI tends to evolve over time and what trends could indicate positive or negative performance shifts

Diagnostic Questions

Questions to ask to better understand your current position is for the KPI and how it can improve

Actionable Tips

Practical, actionable tips for improving the KPI, which might involve operational changes, strategic shifts, or tactical actions

Visualization Suggestions

Recommended charts or graphs that best represent the trends and patterns around the KPI for more effective reporting and decision-making

Risk Warnings

Potential risks or warnings signs that could indicate underlying issues that require immediate attention

Tools & Technologies

Suggested tools, technologies, and software that can help in tracking and analyzing the KPI more effectively

Integration Points

How the KPI can be integrated with other business systems and processes for holistic strategic performance management

Change Impact

Explanation of how changes in the KPI can impact other KPIs and what kind of changes can be expected


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