Every utility serves a unique customer base with its own water use and revenue generation patterns. Knowing its customers in detail helps a water provider customize policies and communication strategies not only for the customer base but also for smaller, targeted groups. This article introduces a relatively inexpensive way that utilities can use existing billing data to learn more about customer use patterns and applies this methodology at five North Carolina utilities. Developing smarter revenue and water use analytics that take into account changes in use behavior helps utilities be proactive in planning for resources changes (and the resulting financial implications) and be more effective in their communications and marketing. By moving away from engaging with residential customers as one homogeneous mass and instead treating them as groups of customers with distinct habits and values, utilities can use targeted messaging and outreach to bring customers on board with new policy rollouts.

Water and wastewater utility managers are encountering a host of financial challenges beyond their control. From the recent economic recession to the health of financial markets, aging infrastructure, and a changing climate, complex issues threaten utilities' financial health. Many water utilities are responding to address these challenges. To date, few studies have examined how widespread innovative financial practices are among the nation's public water systems and how these practices are helping utilities cope with mounting financial challenges. This article examines the major financial challenges facing water utilities and reviews the current state of the US water sector's financial management practices with the aim of strengthening policymakers' understanding of the drivers and impacts of available financial mechanisms. Utility financial practices are evaluated on the basis of their ability to minimize risk and create financial resilience in utility financial management.