The primary purpose of this report is to provide information and to describe techniques that will help utilities and others determine the impacts of reduced demand on water utilities. The remainder of the report is organized as follows: Chapter 2, "Methods and Materials", describes the case-study format and the methodology used to collect the data; Chapter 3, "General Concepts," provides an overview of the significant economic and financial analysis concepts used to categorize and analyze the data; Chapter 4, "Profiles of Participating Agencies," describes the participating agencies, including general profiles of each; Chapter 5, "Operating Cost Impacts," details the analytical framework and results for short-term operating costs; Chapter 6, "Revenue Impacts," illustrates how water utility revenues and rates are affected by reduced demand and potential reactions to rate adjustments; Chapter 7, "Long-Term Capital Savings," describes potential savings from capital deferrals or avoidance resulting from demand reduction; Chapter 8, "External Impacts," provides an overview of the impacts that may occur outside of water utilities as the demand for water decreases; Chapter 9, "Conclusions," looks at all the impacts and how the results of this study can be used by utilities.