How is "non-revenue water" best defined?

Non-revenue water is best defined as water that is produced but not billed to customers. This encompasses all water that is generated in the water supply system and does not generate any income for the utility. This can occur for several reasons, such as leaks in the distribution system, water theft, inaccuracies in metering, or water supplied for public purposes like fire protection or filling hydrants. While water supplied free of charge might seem similar, it is specifically the water that has been produced but does not contribute to revenue, which is the core aspect of non-revenue water. Understanding this definition is crucial for water utility management, as minimizing non-revenue water can lead to better operational efficiency and improved financial health for water distribution systems.