Milo, between the rate tier system, the rate hikes, and the economy, per capita usage has declined by about 16 percent. There is clearly some Price and Income Elasticity of Demand for water. The simplest explanation is that the big consumers are not using it in their homes, they're putting it on their grass.

The tiered pricing is working. Conservation is the killer app for addressing our water problems. It takes strain off the infrastructure and reduces maintenance costs. We have a family of three, including a teenager who takes two showers a day. We have several pets, and go through laundry and dishes like mad. We paid $21.58 last month.