In the context of the water utility sectors, non-revenue water (NRW) is the difference between the

volume of water supplied into the distribution system and the amount paid to customers. For water
utilities, it usually acts as a performance indicator. Elevated non-revenue water levels generally
indicate low quality water in the utility. There are three components to it:

Poor subterranean asset quality, inactive leakage management, and system leakage as a result of
insufficient operations and maintenance are examples of physical losses.

Economic losses resulting from data entry errors, theft, and under-registration of water meters.

Unbilled allowed consumption is the amount of water utilized for operational (e.g., firefighting)
purposes by a particular utility.