Effective management of water supply systems consists in supplying adequate quantities of clean water to the population. Detailed pilot studies of water distribution systems were carried out in 9 cities in India during 1971-81 to establish the feasibility of a programme of assessment, detection, and control of water losses from supply systems. A cost-benefit analysis was carried out. Water losses from mains and service pipes in the areas studied amounted to 20-35% of the total flow in the system. At a conservative estimate, the national loss of processed water through leaks in the water distribution systems amounts to 10(12) litres per year, which is equivalent to 500 million rupees.It is possible to bring down the water losses in the pipe mains to 3-5% of the total flow, and the cost incurred on the control programme can be recovered in 6-18 months. Appropriate conservation measures will help in achieving the goals of the International Water Supply and Sanitation Decade to provide clean water for all.