We all know water is essential for life and economic growth, but the truth is we often treat it like it’s limitless. This “undervaluation” of water for so long has created a bigger and bigger problem that is now coming home. We have not been doing enough to save it, not encouraging enough innovation, and potentially putting our future at risk, especially with climate change, a growing population, and aging infrastructure.
Our new insight paper, “The Paradox of Cheap Water: Strategies for Scaling Efficiency”, discusses how the current water utility business model, reliant on volume-based revenue, creates a paradox. When conservation works, revenue declines for water utilities, but fixed operational costs are the same.
Plus, with a fragmented water supply landscape with over 52,000 separate water systems across the country, it’s difficult to make systemic changes and scale efficiency, especially in areas where water is already scarce.
But do not despair, there is good news and we are seeing innovative solutions emerge! The 50 Liter Home Los Angeles Pilot Project, led by the World Business Council for Sustainable Development (WBCSD), USGBC-California, and a team of committed global partners, showed that households can reduce indoor water use by over 50% against average use without sacrificing comfort or convenience. We have proven that a combination of emerging smart technology, focused education to drive shifts in consumer behavior, and teamwork between public and private groups can make a difference.
So, how do we transform our water systems and make efficiency widespread? Here’s a strategic roadmap with four key pillars:
- Drive Change Through Collaboration: Let’s create strong partnerships across water, energy, housing, and manufacturing. This can lead to combined incentives, whole-home retrofits, and pilot community-based conservation projects.
- Innovative Strategies for Funding: We can learn from how we fund the energy sector and other infrastructure. Imagine using municipal bonds and creative pricing models to invest in water efficiency for the long haul, as a long-term capital investment.
- Promote State and Federal Standards: We need updated efficiency rules and requirements for retrofits. Consider building on successful frameworks like California’s “Making Water Conservation a Way of Life” and the federal Energy Policy Act of 1992.
- Shift Public Perception of Water’s Value: It’s time to truly value water as the precious, limited resource it is. This means more transparent and accurate pricing, leveraging smart technology, intentionally educating everyone, and working more directly with contractors to shift to a whole home approach to accelerate the rate of positive change.
By putting these strategies into action, we can modernize our relationship with water. It’s about making sure our economic decisions support our sustainability goals. By investing in innovation, reimaging our regulations, and empowering communities, we can bridge the growing gap in water infrastructure funding—which is expected to hit a staggering $194 billion by 2030—and build a more resilient, efficient, and equitable water future for all.
(Posted 8/18/25)
About the Author
Ben Stapleton, Executive Director of the U.S. Green Building Council California (USGBC-CA), is a recognized sustainability leader who brings a creative mind and consultative approach to a wide range of projects with a focus on building teams and designing programs to deliver impactful results.
