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What about Multi- family Dwellings? Multi- family dwellings may be at an advantage for conservation rate implementation and meeting conservation goals because they share a single yard, leading to more efficient use of water for lawn and aesthetic care, effectively making lower water use targets readily achievable. Multi- family dwellings with one customer meter are to divide the water used during the billing period by the number of units to determine the water use rate. Individual dwellings within a multi - family dwelling may be encouraged to better conserve water by metering each unit separately. What about Industrial Customers? The goal of conserving water applies to both residential and industrial customers. However, commercial and industrial water rates are not required to be the same as residential rates, and can consist of uniform rates that promote conservation by industry. For very large water users, the water supplier and user may have a contract that determines the rate used for that customer, with the goal still being to encourage the industry to use water wisely, apply water conservation technologies and limit outdoor water use for lawn irrigation. Statutory Charge Minnesota Statutes, section 103G.291, require public water suppliers serving more than 1,000 people to adopt demand reduction measures, including a water conservation rate, or a uniform rate with a conservation program: Minnesota Statutes, section 103G.291, subd. 3. demand reduction (c) Public water suppliers serving more than 1,000 people must encourage water conservation by employing water use demand reduction measures, as defined in Subd. 4, paragraph (a) before requesting approval from the commissioner of health under section 144.383, paragraph (a), to construct a public water supply well or requesting an increase in the authorized volume of appropriation. The commissioner of natural resources and the water supplier shall use a collaborative process to achieve demand reduction measures as a part of a water supply plan review process. Minnesota Statutes, section 103G.291, subd. 4. demand reduction measures (a) For the purposes of this section, "demand reduction measures" means measures that reduce water demand, water losses, peak water demands, and nonessential water uses. Demand reduction measures must include a conservation rate structure, or a uniform rate structure with a conservation program that achieves demand reduction. A "conservation rate structure" means a rate structure that encourages conservation and may include increasing block rates, seasonal rates, time of use rates, individualized goal rates, or excess use rates. If a conservation rate is applied to multifamily dwellings, the rate structure must consider each residential unit as an individual user. (b) To encourage conservation, a public water supplier serving more than 1,000 people must implement demand reduction measures by January 1, 2015. Last Updated July 2, 2012 4