New Plymouth has begun an $18 million project to roll out water meters to 26,000 homes in the district.
On average, the city's residents use 288 litres of water per day compared with the New Zealand average of 222 litres.
Three waters manager Mark Hall said that was putting extra strain on the district's 800km of ageing drinking water pipes, some of which were more than 100 years old and bursting at the seams.
"Combine that with a growing population and the fact that we're already maxing out our water sources during dry periods, and it makes a pressing case for using water more efficiently," Hall said.
Water meters would help cut water use by about 20 percent and help reduce the cost of future investment in the infrastructure, he said.
"If we cut our water use by a quarter, we could cut the cost for new pipes and equipment from $171 million over the next 30 years to just $50 million."
The water meter rollout will start in Fernleigh this month after a successful pilot installation of meters in Brooklands earlier this year.
New Plymouth District Council will coordinate the rollout of water meters in towns and suburbs with other water projects to reduce any inconvenience to residents.
At present, most households pay a uniform water rate of $350. The council has said it would not introduce metered water charges until end of the 2024/2025 financial year.
Fast facts
Right now, most households pay a flat rate for water regardless of how much they use.
New Plymouth residential water use is 288 litres per person per day, higher than the national average of 222 litres. (Source: 2021 National Performance Review, Water NZ)
New Plymouth average daily water use is 50 percent to 100 percent higher than in Whangārei, Marlborough, Nelson, Palmerston North, and Kāpiti.
The law prevents the council making a profit on water supply, so it only covers its treatment and delivery costs.
New Plymouth is investing $248 million over 10 years to its 'Fix the Plumbing' plan.