Over the long-term, conservation can decrease a utility's need for new capital facilities for supply acquisition, treatment, storage, pumping, and distribution. It may also reduce the costs of operating those facilities. Deferring investment in such facilities or reducing their size can provide significant cost savings. In areas experiencing population growth, conservation can provide additional capacity to accommodate growth, resulting in a larger customer base over which to spread future capital costs. Water rates may be lower with conservation than without.
Water conservation can affect wastewater collection and treatment systems.
Reduced hydraulic loadings can improve treatment performance in terms of effluent quality and reduced operating costs. Reducing wastewater flows through conservation can result in cost savings by deferring the need to enlarge wastewater treatment facilities. The first goal of any rate structure is to generate sufficient revenues to maintain efficient and reliable utility operations, and the second is fairness in the allocation of utility service costs. Generally, it is possible to satisfy both of these goals in a rate structure that encourages water conservation or penalizes excessive water use. Conservation-oriented water rate structures by themselves do not constitute an effective water conservation program.