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How IoT for Utilities is Changing Non Revenue Water Prevention

Explore effective IoT water utilities strategies to reduce non-revenue water and enhance water management efficiency. Read more here.

Table of Contents
Table of Contents

Introduction

Water utilities worldwide are facing enormous pressure to modernize—aging water infrastructure, rising operational costs, and the persistent challenge of non revenue water (NRW). At Waltero, we’ve seen firsthand how this combination of hurdles leads many utilities to hunt for better solutions. That’s why digital water utility and IoT water utilities have become such compelling options: by shifting to an integrated network of sensors, analytics, and near real-time data flow, utilities can finally move from a reactive maintenance model toward a more proactive, efficient, and sustainable one.

The Challenge: Non-Revenue Water and Aging Water Infrastructure

Whether you’re a small municipality in the Midwest or a major metropolis in Europe, water losses remain a critical issue. Non revenue water is the water your system produces but never bills for—often due to hidden leaks, pipeline breaks, or inaccurate metering. Estimates put global NRW averages near 20% or higher, with some systems losing up to half of their treated supply. That’s a significant chunk of lost revenue and wasted resources.

Aging water infrastructure

Exacerbating this problem is the reality of aging water infrastructure. Some water mains date back to the early 1900s, making them prone to frequent bursts and structural deterioration. Utilities often end up playing whack-a-mole: fixing a main break on Monday, only to scramble when another pipeline fails the following week. This cycle drains budgets and leaves teams perpetually in emergency mode. Infrastructure improvements are crucial in addressing non-revenue water and aging infrastructure, helping to increase operational resilience, adapt to technological advancements, and implement effective utility asset management.

The Digital Transformation: IoT Water Utilities

The digital transformation of water utilities is a critical step towards creating a more sustainable and efficient water management system. By leveraging advanced technologies such as IoT, AI, and data analytics, water utilities can optimize their operations, reduce water loss, and improve customer engagement. Digital transformation enables water utilities to become more proactive, financially sustainable, and environmentally responsible entities. The benefits of digital transformation include automated processes, more efficient operations, improved data analysis, and enhanced decision-making capabilities.

From Reactive to Proactive Maintenance

Traditional maintenance often means waiting until a leak surfaces, leading to disruptive, last-minute repairs. Not only does this create unplanned expenses, but it also leads to service outages, reputational damage, and in some cases, safety risks. This may not strike you as controversial, but at Waltero, we believe in the power of predictive maintenance. This approach uses data from various IoT sensors to anticipate failures before they cause major headaches.

Reactive vs proactive maintenance

Here’s why the shift is so important:

  1. Better Resource Allocation – Instead of dispatching emergency crews to every break, you can schedule maintenance activities around data-driven forecasts.

  2. Cost Savings – Proactive measures often cost less than large-scale repairs. By spotting issues early, utilities avoid expensive overtime labor and water loss.

  3. Improved Customer Satisfaction – Fewer water disruptions and quicker notifications of leaks lead to happier ratepayer.

Proactive maintenance can significantly reduce maintenance costs through timely interventions, leveraging remote monitoring and condition-based alerts to prevent equipment failures.

How IoT Water Utilities Enable Near Real-Time Visibility

The digital transformation in water utilities starts with IoT-enabled devices to enhance operational efficiency. These endpoints—from smart meters to acoustic sensors—constantly gather data on flow, pressure, and usage patterns, then share insights with centralized systems or local processors.

Smart Meters & Data Collection

Smart water meters, often part of an advanced metering infrastructure (AMI), collect detailed usage data at scheduled intervals (hourly, daily, or even more frequently). This granular information helps your team detect anomalies, such as an unusually high continuous flow at a home that might signal a leak. By alerting customers early, utilities can reduce wasted water and lower operational costs.

Importantly, AMI systems let us track not just consumption but also potential backflow incidents, pressure trends, and other metrics that highlight performance gaps. We’ve seen utilities slash their NRW percentage within a year of deploying these systems, underscoring how IoT water utilities can dramatically enhance both revenue protection and public trust. Smart water management, utilizing IoT technologies, plays a crucial role in enhancing water resource management through real-time monitoring, predictive analytics, and improved customer engagement.

Edge Computing Leak Detection

While cloud analytics can handle massive data crunching, edge computing leak detection solutions bring intelligence closer to the pipeline. Instead of sending raw acoustic or flow data constantly to a central server, an on-site device can perform scheduled or near real-time analysis. When a leak signature is detected, the device raises an alert immediately. This approach:

  • Reduces Bandwidth Costs: Fewer large data transfers

  • Speeds Response: Local processing means you can know about a leak right away

  • Conserves Power: Particularly important for battery-operated sensors in remote locations

Monitoring the water distribution network is crucial for timely leak detection, ensuring efficient management and service delivery.

By merging edge computing with acoustic sensors or pressure monitors, water utilities get a clear view of their network’s health in near real-time, without the delays of a purely cloud-dependent system.

Predictive Maintenance & Smart Water Network Insights

A smart water network integrates all these data sources—meters, sensors, GIS data—into one cohesive platform. Predictive maintenance algorithms then use both historical and current data to forecast where failures are most likely. Imagine knowing which pipe segment is at the highest risk for a burst and scheduling a preemptive replacement before major damage occurs. This approach helps to manage water resources more effectively by optimizing water supply and demand, improving resilience against challenges, and integrating efficiency to reduce environmental impact.

This proactive stance is gaining traction as regulators worldwide push for lower leakage levels and greater accountability. By combining AMI, edge analytics, and robust asset management software, utilities can steadily chip away at non revenue water, preserve precious resources, and meet higher standards of service.

Practical Steps for Implementation

If you’re evaluating how to bring these concepts to life, here are some core steps we recommend:

  1. Start with a Pilot Test IoT sensors in a limited area—like a district metered zone—before expanding system-wide.

  2. Assess Infrastructure & Data Needs Inventory your pipes, valves, and meters to see where the highest risks lie. Decide how you’ll collect and integrate new data streams.

  3. Roll Out Sensors and AMI Deploy sensors or upgrade to smart meters and specialized leak detection equipment in targeted zones first. Gradually expand to additional areas as the ROI becomes clear.

  4. Integrate Digital Technologies in Wastewater Treatment Plants Modernize wastewater treatment plants by incorporating IoT devices and innovative processes. This enhances operational efficiency, optimizes water reuse, and minimizes environmental impact.

  5. Adopt Predictive Analytics Tools Whether built in-house or through a vendor, use AI-based software to identify hotspots for potential leaks or main breaks.

  6. Train Your Workforce Even the best hardware or software won’t deliver results if staff aren’t prepared. Make sure field crews and analysts understand new workflows and can interpret sensor data effectively.

At Waltero, we help our partners implement these steps in a way that fits each utility’s size, budget, and overall strategy.

Environmental Sustainability and Reporting

Environmental sustainability is a critical aspect of the water industry, and digital technologies can play a significant role in promoting sustainable practices. Water utilities can use data analytics and IoT sensors to monitor and manage their environmental impact, reducing energy consumption and greenhouse gas emissions. Additionally, digital technologies can enable water utilities to provide transparent and accurate reporting on their environmental performance, meeting regulatory requirements and stakeholder expectations. By embracing digital transformation, water utilities can contribute to global water sustainability goals and reduce their environmental footprint.

Customer Engagement and Experience

Customer engagement and experience are critical components of a successful digital transformation strategy in the water industry. By providing customers with real-time information on their water consumption, water utilities can empower them to make conscious decisions about their water usage. Digital technologies such as smart meters and mobile apps can enable customers to track their water consumption, receive alerts on leaks and anomalies, and access personalized recommendations for water conservation. By improving customer engagement and experience, water utilities can build trust, increase customer satisfaction, and promote water conservation practices.

Real-World Impact: Bringing Down Non Revenue Water

Across the U.S. and Europe, we’ve seen utilities cut NRW by 20–50% after implementing IoT-enabled leak detection and predictive maintenance measures. By spotting small leaks before they escalate, systems can save millions of gallons every year—improving water supply reliability, water quality, and revenue capture.

To ensure water supply in the future, we need to manage water resources

Early leak detection prevents contamination, ensuring that water quality is consistently monitored and maintained. One utility in Colorado identified underground leaks far earlier than traditional acoustic surveys had allowed, resulting in quick repairs and fewer service interruptions.

Conclusion

With increasing investment in water infrastructure and the steady rise of IoT water utilities, we expect proactive maintenance to become the new standard. Regulators are tightening the screws on water losses, and public demand for environmental responsibility will only grow. By leveraging near real-time analytics and advanced detection tools, utilities of all sizes can escape the cycle of costly, reactive fixes.

Here at Waltero, we’re excited to stand at the forefront of this digital transformation. We see a future where integrated, data-driven systems help water utilities build trust, enhance resilience, and safeguard precious water resources.

Anders Carlberg – Co-Founder & Director of Customer Success, Waltero

Anders is a hands-on entrepreneur committed to solving customer challenges through Waltero’s AI and monitoring solutions. With extensive experience in IT services, he guides utilities worldwide in adopting data-driven strategies for operational excellence.