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Changes in Water Use Under Regional Climate Change Scenarios [Project #4263] ORDER NUMBER: 4263 DATE AVAILABLE: September 2013 PRINCIPAL INVESTIGATORS: Jack C. Kiefer, John M. Clayton, Benedykt Dziegielewski, and James Henderson OBJECTIVES The primary purpose of this research study was to increase the adaptive capacity of water utilities in planning for and responding to pressures that may result from climate change. Unlike the majority of previous studies regarding the potential effects of climate change, this study concentrates on the demand for water. The primary objectives of this study were to: Review the importance of climate in shaping general demand patterns and geographical differences in water use Examine ways to model the effects of climate and weather on water use Prepare downscaled climate projections and develop a process for selecting climate scenarios for further investigation Demonstrate the use of water demand modeling methods to simulate and quantify potential demand impacts from selected climate scenarios Evaluate the implications of potential demand-side impacts of alternative climate change scenarios for water resources planning and management Illustrations and examples of useful ideas and techniques play an important role in all aspects of this study and take full advantage of water use data provided by several water utilities. BACKGROUND U.S. cities and municipalities regard a reliable supply of water as an essential service to protect public health and safety and support economic growth and community well being. The water utility industry accommodates this need through securing and treating ample water supply resources for “on demand” delivery of high quality water in sufficient quantities and at suitable pressure for consumption and fire protection. Understanding the consequences of changes in climate is particularly important for the water supply sector. Climate change has been identified as a key future trend and uncertainty affecting water demand, supply, and resource competition in the United States (Dziegielewski ©2013 Water Research Foundation. ALL RIGHTS RESERVED. and Kiefer, 2006). To date, studies of the effects of climate change on water resources have generally remained supply-centric due to the hydrologically sensitive nature of water systems. Several studies have identified potentially severe impacts of climate change on the ability to capture, store, and divert water for human and ecological purposes [e.g., see Frederick and Major (1997), Frederick and Gleick (1999), Cromwell et al (2008)]. Alterations may occur in processes related to run-off, streamflow, available storage, and other hydrologic factors, which will affect available supplies and supply variability. Notwithstanding potential impacts on water supply, climate change can also be expected to affect the demand for water. Water use depends both on long-term climate and seasonal weather patterns, and is responsive to short-term fluctuations in actual weather conditions. Over the long run, climate change may also influence long-term trends in regional population growth and the location and scale of production processes, which drive the average level of water demand in any particular locale. Because climate change can be expected to affect both the demand and supply of water, climate change will influence the future reliability of water supply systems (Kiefer, 2006). There have been relatively few studies of the potential impacts of climate change on the demand for water, and the topic has been identified as a gap in scientific knowledge related to climate change adaptation (Intergovernmental Panel on Climate Change, 2008). Since the demand for water is also influenced by climate and associated weather conditions, it is possible that water demand and supply may diverge at an accelerating rate due to climate change (California Urban Water Agencies, 2007). If climate change results in hotter and drier weather in the future, it can be expected to increase demand for water and reduce supply, thereby exacerbating water shortages or causing new ones. Because it is the mission of most if not all water providers to meet the demands of their customers, it is necessary to anticipate the potential implications of climate change on water consumption in order to more robustly understand the risks and vulnerabilities associated with climate change, which may affect future water management options (Figure ES.1). APPROACH The study began with a reconnaissance-level evaluation of regional trends in water use in the United States, inclusive of demands associated with non-urban sectors. The purpose of the regional analysis was to highlight broad-scale water use patterns and to identify water demand pressures that may intensify under future climate. Using data on county- and state-level water withdrawals collected by the U.S. Geological Survey and other secondary information, several water use metrics were evaluated within the context of indicators of climate vulnerability including regional trends in population, the presence and allocation of withdrawals among potentially competing water uses (such as urban demands, agriculture, power production, and ecological flows), rates and levels of water withdrawals for specific purposes, the degree of reliance on surface water supply sources, and estimated time trends in metrics calculated for these indicators of vulnerability. The regional analysis served as an important backdrop for evaluating prospective climate impacts on the demands of municipal (or urban) water systems, which was the primary focus of the study. With regard to municipal water demands, the research approach set out with a foundational assessment of the importance of climate in shaping water use patterns, which utilizes a substantial amount of data provided by participating water utilities for the illustration of ©2013 Water Research Foundation. ALL RIGHTS RESERVED. Figure ES.1 Water Demand, Supply, and Pathways of Influence from External Factors Such as Climate Change key points and concepts. A fundamental requirement for empirically estimating the potential impacts of climate change on demand is the ability to construct statistical relationships that correlate climate and associated weather patterns with water use. Therefore, the next key component of the research approach involved an assessment of water demand modeling techniques and their applicability to climate change analysis. Key modeling considerations are discussed, including the measurement and choice of water use metrics and the selection of appropriate climate and weather variables. Alternative methods are provided for differentiating the effects of climate, which are embodied in repeating cyclical patterns in water demand, from the effects of actual weather, which contribute to the variability of demand around these normal repeating patterns. The evaluation of water use modeling techniques also makes use of data provided by participating water utilities, as well as several useful concepts that have been introduced in the literature over the last several decades. ©2013 Water Research Foundation. ALL RIGHTS RESERVED. From these macro-regional and foundational underpinnings, the study shifts toward the empirical estimation of potential water demand impacts for the following set of six case study utilities: 1. 2. 3. 4. 5. 6. Colorado Springs Utilities Region of Durham (Ontario, Canada) Massachusetts Water Resources Authority Southern Nevada Water Authority San Diego County Water Authority Tampa Bay Water A methodological framework for conducting the case studies was developed, which includes processes for selecting and processing downscaled climate projection scenarios from available General Circulation Models (GCMs), translating these projections into implied future values of weather, and substituting these scenarios into water demand models to predict potential demand-side impacts (Figure ES.2). Figure ES.2 Generalized Process for Development of Case Studies In order to meet the requirements of the water demand models, this study employed downscaled model projections from the Bias-Corrected Constructed Analog (BCCA) section of the World Climate Research Programme’s (WCRP’s) Coupled Model Intercomparison Project phase 3 (CMIP3) multimodel dataset (CMIP3 dataset) (Maurer et al., 2010). The BCCA dataset contains results from a subset of 9 of the models in the CMIP3 archive. The BCCA dataset has climate change projections for time slices surrounding the following years: 2055 and 2090. Each time slice in this dataset is a 20-year time period with the identified year in the middle of the ©2013 Water Research Foundation. ALL RIGHTS RESERVED. period ― for example the 2055 time slice includes the years 2046 to 2065. Multiple model runs using different initial conditions are provided for some models, and there are a total of 53 model/runs for a given time period. Baseline projections (backcasts) for the period 1961 to 2000 are available for each model, however the period 1971 to 2000 is used for this study. The projected change in climate compared to baseline, or the ‘delta’ (e.g., + 2 F or -5% precipitation), is the most critical piece of information for translating projected changes in climate into projected changes in demand. Figure ES.3 Illustration of Quadrant Scenario Approach to Model Selection The case studies use a scenario approach to incorporating climate change projections into water demand modeling. The scenarios are designed to identify a wide range of model outputs in terms of temperature and precipitation. The range of outputs is conceptualized based on four quadrants of temperature and precipitation pairings, which within a scatterplot identify four general projection conditions relative to the (conceptual) mean of all available projections for a given time period (Figure ES.3). The scenarios are labeled “Hotter/Drier”, “Hotter/Wetter”, ©2013 Water Research Foundation. ALL RIGHTS RESERVED. “Cooler/Drier”, and “Cooler/Wetter.” A “Middle/Moderate” scenario is also identified.1 Note that the scenario approach does not attempt to assign probabilities or likelihoods to individual scenarios, which is beyond the general ability of climate science as it exists currently. Use of a scenario approach served two important purposes for the study. Namely, this approach defined a range of climate model projections for a particular location, given the significant variability of projections across GCMs and uncertainty associated with model run output. Furthermore, this approach served as a useful data reduction technique and limiting the number scenarios to an adequate range of extremes reduced data processing time significantly. Finally, the range of five climate scenarios was uniquely selected for each case study location for 2055 and 2090 climate projection periods. The implied changes in climate relative to historical conditions were then fed into the water demand models either provide by or estimated for the case study utilities to generate predicted changes in water use relative to levels of water use that would be predicted under historical climate conditions. The results of the case studies were then synthesized and used to evaluate implications for adaptation and water supply planning and management. RESULTS/CONCLUSIONS The study resulted in several principal conclusions spanning across several topics that are important to evaluating the potential effects of climate change on water demand. The main conclusions can be summarized as follows: 1. Weather sensitive demands are prevalent and will be affected by climate change. Weather-sensitive water demands exist in virtually all places in the country and account for a substantial portion of total municipal water demands in most regions and a majority of total demand in some areas and times of the year. Municipal water demands are sensitive to regional differences in climate and are responsive to variability in actual weather conditions. In hot and dry climates of the West average customer demands can be 50 to 80 percent higher than in the humid East. Climate is responsible for explaining a considerable amount, if not a majority, of intra-annual variability (i.e., average month-to-month changes) in demands in most water utility service areas. After accounting for long-term trend, variability of weather conditions within a given climate accounts for most of the inter-annual differences in demand (e.g., differences in annual demand between consecutive years). Fundamental differences in climate across geographical regions explain large differences in average rates of water consumption, as well as differences in the pattern of monthly and daily demands within the calendar year. 2. Evaluation of weather and climate impacts involves a host of technical modeling requirements, choices, and tradeoffs. With regard to water use modeling, an over-riding conclusion is that only certain types of models, specifically those that contain and relate weather and climate indicators to water use, are 1 The Hotter/Drier, Cooler/Wetter, Cooler/Drier, and Hotter/Wetter scenarios are selected relative to the Middle/Moderate scenario (and named accordingly), without reference to current or historical climate. For example, in the context of this study, a “cooler” climate projection scenario may in fact be hotter than the current climate. ©2013 Water Research Foundation. ALL RIGHTS RESERVED. relevant for evaluating the potential effects of climate change. Water use models based on relatively more frequent measurements of water use (e.g., monthly, weekly, and daily) are more preferable for evaluating the effects of weather and climate effects than models based on coarser time measurements. Aggregate measures of demand, such as water production, are typically more readily available, have more frequent measurements, and are easier to match with weather records than water billing data for customers and customer classes, which tend to reflect uneven and less frequent time intervals due to customary meter reading and customer billing practices. However, disaggregate data may be generally preferred for evaluating long-term structural trends in demands and differences in climate sensitivity across various water using sectors. Disaggregation of water use into sectors or user types can provide more information about the effects of weather and climate and how these effects may vary over relatively homogeneous classes of customers. Demand models should be specified to include measures of warmth and moisture, both of which are available or can be calculated from climate projection data. Historical observations on air temperature and precipitation should in most cases be readily available. Furthermore, climate projection data fundamentally contain projections of air temperature and precipitation, which makes a direct connection to historical data and model variables, in terms of definition and measurement. Other climatic variables, such as reference evapotranspiration (ETo), effective precipitation, and others, have proven useful for modeling demand, but both historical and projection data for those variables are relatively less available and require more assumptions to derive than basic measures of temperature and precipitation. Systematic seasonal patterns of demand associated with climate are typically highly correlated with air temperatures and agronomic measures of moisture requirements that are correlated with air temperature (such as ETo). Water demand models that account for systematic seasonal patterns in historical water use by specification of repeating fixed or harmonic seasonal effects may render these models less useful in cases where seasonal patterns associated with future climate are expected to differ significantly. Because of its high correlation with the notion of seasons, average high air temperatures may be used as an effective statistical instrument for capturing the effects of historical seasonal fluctuations in demand and for projecting potential future seasonal patterns under climate change scenarios. The separation of demand into base and seasonal use (i.e., non-weather- and weather-sensitive) components is useful for identifying particular thresholds of temperature to use as seasonal instruments, which do not necessarily force future demands to follow the same seasonal patterns of demand associated with historical climate. Projected impacts of climate change scenarios differ across different water demand models that diverge in underlying specification and functional form. The addition of non-weather socioeconomic covariates in water demand models enhances the ability to evaluate factors that may counteract or further exacerbate predicted demand effects from future climate scenarios. Probabilistic methods for demand forecasting further enhance evaluation of climate scenarios by providing a means of examining variability in climate relative to uncertainty about socioeconomic conditions. 3. Derivation and processing of climate model projections is a data intensive process. The identification and processing of suitable climate projections is the bridge between modeling the response of water use to climate and weather and the use of water demand models ©2013 Water Research Foundation. ALL RIGHTS RESERVED. in assessing potential impact. Projections for multiple climate model runs should be used to evaluate a range of projected climate scenarios, since future climate projections are implicitly considered to be equally likely to occur. Daily-level climate projection data are required to derive values of certain weather variables, such as average maximum daily temperature, the length of hot or dry spells, and others. The need for multiple climate runs and requirements for daily scale data can create voluminous data sets that can be hard to manage. Data reduction techniques are recommended to make data processing and simulations more manageable. The selection of relatively extreme scenarios is helpful, both as a data reduction technique and as a means of characterizing the range of climate projections. Finally, even if downscaled climate projections are considered to be bias-corrected, ground-truthing of climate model backcasts of historical weather conditions relative to observed historical averages is necessary to examine whether biases may still exist because of differences in geographical scale. Additional bias corrections were necessary for the case studies evaluated in this study. 4. Climate projections and estimated demand impacts vary geographically. The reconnaissance-level evaluation of regional climate change vulnerabilities and statistical estimation of demand impacts for six utilities suggest that future climate scenarios could lead to additional complications for water resources management. With respect to broad regional trends, many highly-populated areas rely on surface water as the primary source for meeting demands. These sources are generally more hydrologically variable and vulnerable to climate shifts than ground water sources, and this reliance is increasing in some places (Figure ES.4). For regions with high and growing urban demands, high rates of agricultural withdrawals and greater reliance on surface water sources, climate changes that result in warmer and drier conditions or changes in seasonal supply conditions will likely exacerbate existing demand pressures. ©2013 Water Research Foundation. ALL RIGHTS RESERVED. Figure ES.4: Percentage Surface Water Withdrawals by County, Freshwater, Thermoelectric Withdrawals Removed, 2005 (Source: U.S. Geological Survey, Estimated Use of Water in the United States, County-Level Data for 2005) With regard to case study locations, substantial warming is predicted for the case study locations, with double-digit increases (in degrees Fahrenheit) under some scenarios by 2090. Projected changes in precipitation show less agreement among climate models than projected changes in temperature. However, climate projections for western case studies (Southern Nevada Water Authority, San Diego County Water Authority, and Colorado Springs Utilities) more consistently indicate less annual precipitation. Among the six regions, only MWRA is projected to receive more precipitation annually than observed historically. On an average annual basis, an increase in water demand is projected for all case study utilities and across all climate projection scenarios evaluated for 2055 and 2090 climate projection years (Table ES.1). Among the case studies, the estimated relative increases in demand are far and away the greatest for Colorado Springs Utilities (CSU), where the predicted climate-induced increases in demand range from a maximum of 23.2 percent under mean 2055 climate to a maximum of 45.0 percent under mean 2090 climate. The estimated degree of potential increases in demand is also relatively high for San Diego County (SDCWA), where the maximum relative projected increases in demand are 12.7 percent under mean 2055 climate and 23.7 percent under mean 2090 climate. ©2013 Water Research Foundation. ALL RIGHTS RESERVED. Table ES.1 Range of Estimated Projected Changes in Mean Annual Demand by Case Utility and Climate Projection Year Mean Estimated Demand Mean Estimated Demand 2055 Climate (%) 2090 Climate (%) Utility Min Max Min Max Colorado Springs Utilities (CSU) 5.9% 23.2% 7.7% 45.0% Regional Municipality of Durham (Ontario, Canada) (Durham Region) 1.6% 4.3% 2.0% 8.3% Massachusetts Water Resources Authority (MWRA) 1.7% 5.0% 2.5% 9.1% Southern Nevada Water Authority (SNWA) 3.9% 9.4% 5.2% 15.5% San Diego County Water Authority (SDCWA) 3.5% 12.7% 9.2% 23.7% Tampa Bay Water (TBW) 1.2% 5.3% 2.1% 9.9% = Relative (delta) change in mean water demand as compared to reference mean demand under historical weather conditions. There are similarities among the results for Durham Region (Ontario, Canada), Massachusetts Water Resources Authority (MWRA), and Tampa Bay Water (TBW). Namely, estimated increases in demand are relatively small on an annual basis when compared with the results for the other western utilities, and the range of estimated changes in demand across scenarios is considerably smaller, as well. Only moderate impacts ranging from a maximum change of about +5% for 2055 climate and a maximum change of about +10% for 2090 climate are estimated for these three water utilities which are located in the more humid East. The range of projected impacts for Southern Nevada Water Authority (SNWA) is in the middle of the six cases. Projected impacts for SNWA range from a maximum projected increase in demand of 9.4 percent under mean 2055 climate to a maximum projected increase of 15.5 percent under mean 2090 climate. In almost every case, the maximum estimated demand impacts for 2090 climate are nearly double the maximum impacts estimated for 2055 climate. The range of impacts is also wider for the 2090 projection year. Furthermore, estimated impacts vary seasonally and are most pronounced for the 2090 Hotter/Drier scenario (see Figure ES.5). Seasonal estimates of demand impacts generally point to a lengthening of the watering season (e.g., spring-like conditions starting sooner and summer-like conditions lasting longer into the fall). ©2013 Water Research Foundation. ALL RIGHTS RESERVED. Estimated Changes in Average Demand by Season, 2090 Hotter/Drier Scenario % change in demand 60% 50% 40% 30% 20% 10% 0% -10% CSU Winter Spring Summer Fall 25.6% 54.3% 52.4% 35.3% Durham Region 0.6% 9.5% 17.8% 3.5% MWRA SNWA SDCWA TBW -0.3% 11.1% 16.4% 6.8% 27.2% 14.6% 11.2% 17.1% 23.7% 24.8% 24.6% 20.8% 8.0% 10.9% 15.3% 5.6% Figure ES.5: Estimated Seasonal Demand Impacts by Case Study Region under 2090 Hotter/Drier Scenario Estimated increases in demand among some case studies would be considered equivalent to effects of significant growth in the number of accounts or population under historical normal climate conditions. Implied weather variability within some climate projection scenarios produces estimates of demand that would be unlikely to be experienced under historical weather. This relates also to hot and dry weather spells and the potential for weather anomalies such as drought. For some cases, the largest absolute average projected change (decrease) in precipitation is paired with relatively large projected changes in seasonal demand For CSU, TBW, and SDCWA, the greatest projected decreases in precipitation generally occur during the seasons when these locations historically receive the most rainfall (i.e., summer in CSU and TBW and winter in SDCWA). For TBW, the 2090 Hotter/Drier projection scenario reflects a dramatic decrease in total precipitation, which would likely alter water use patterns to an extent that cannot be adequately captured by current water demand models. ©2013 Water Research Foundation. ALL RIGHTS RESERVED. 5. A range of options could assist in adapting to demand impacts. The case studies and regional assessments point to several possibilities for adapting to the consequences of climate-induced changes in water demand. Should they continue, some recent trends in patterns of water use, such as declining rates of per capita domestic use and shifts in allocations of water among competing uses, may in some regions counteract some of the additional pressures from warmer temperatures, less precipitation, and urban growth. Denser urban land development could counteract projected increases in water use by reducing irrigated landscape areas and lowering the response of water use to climatic conditions. Furthermore, water pricing strategies could counteract projected increases in water use, either as a result of more supply scarcity and higher costs of service, or through rate structures designed exclusively for the purposes of providing incentives, or both. Increases in water efficiency due to passive and active replacement of inefficient water fixtures, stemming from current and potential future plumbing standards and an evolving market for water-efficient products, generally provide a realistic alternative supply (or buffer) for climate-induced increases in water use. Conceptually, this represents a tradeoff between demands, where lower indoor or domestic demands permit more flexibility for supplying higher weather-sensitive demands. For some of the case study utilities, projected increases in annual average water use are within a range that could be mitigated by increases in water efficiency. However, greater efficiency cannot be considered a panacea for some case studies and scenarios, such as for Colorado Springs, where the sheer magnitude of projected impacts of some scenarios is seemingly out of reach of efficiency potential alone. Furthermore, the degree to which any given community can rely on reductions in indoor (or weather-insensitive) uses to offset increases in weather-sensitive demands may also depend on local and regional water management policies that differentiate and account for consumptive and non-consumptive uses. It is possible that impacts of a warmer climate (and possibly also a drier climate in some regions) could translate into an increased awareness of society of the importance of water in people’s daily lives, particularly if there is a greater likelihood of water shortages and water curtailments. Changes in water-using behaviors can extend beyond hardware-driven changes in the efficiency of water use, and there is evidence that such behavioral change or evolving norms with respect to water use are already occurring in some areas that are naturally “water-short” because of current climate and hydrologic conditions. Finally, projected increases in demand relative to available water supplies may increase the economic value of water, which may make investments in alternative supplies and system rehabilitation more economically justified to both water consumers and water providers. Accommodation of higher demands could also provide opportunities to increase the economic benefits associated with water. Furthermore, in some places, climate induced increases in demand could be met with greater regional supply yields. Ultimately, water utility management of these and other potential effects of climate change, will involve a balance of local, as well as perhaps more regional, considerations including the willingness of water customers to pay for new or more reliable water supplies and the cost of accommodating new or altered water demands. ©2013 Water Research Foundation. ALL RIGHTS RESERVED. APPLICATIONS/RECOMMENDATIONS Based on the results of the case studies, a major conclusion of this study is that changes in climate are predicted to vary both in magnitude and seasonally across the regions of the United States, and the impacts of these changes on water demand will vary because of different geographical sensitivities of demand to climate and weather. The impacts on demand could be relatively large for some locations and relatively moderate or even minor for others. The point is that there is no way of discerning potential impacts without undertaking the types of analyses demonstrated in the case studies. Therefore, a chief recommendation is that water utilities spend more time resources studying and modeling climate- and weather-induced water demand patterns. By applying some of the analytical techniques demonstrated in this study, it is hopeful that water utilities will gain a more thorough understanding of the importance of climate in shaping water demands relative to longer-term socioeconomic factors and the role that actual weather plays in influencing shorter-term demand variability. The insights that are gained about demand may reveal important lessons and implications for both water supply operations and planning, and not just in the context of assessing climate change. This study was intentionally designed to be “demand-centric” in order to help fill a knowledge gap relative to the knowledge that has been accumulated about the potential effects of climate change on water supplies. Ultimately, however, for the purposes of understanding the possible consequences of climate change and related adaptation opportunities, neither water demand nor supply can be evaluated in isolation. Additional research is needed to develop better and more integrated analytical frameworks for addressing more directly water supply reliability, which as a concept captures the notion of demand-supply balance. Integrated analytical approaches that are capable of jointly simulating demand and supply should be developed or extended to accommodate evaluation of climate change scenarios. Such methods would enhance the understanding of risks relative to reference conditions without a change in climate. In concert with more emphasis on water supply reliability and integrated demand and supply modeling, it is recommended that more research be undertaken to evaluate climate scenarios with respect to the possible duration and frequency of future droughts. The effects of hot and dry spells on demand were only touched upon in this study, as opposed to accumulated precipitation deficits over longer periods of time which define drought. The downscaled daily climate data processed during this study suggested the possibility of protracted periods of relatively high temperatures and low precipitation that far exceeded the length of hot and dry spells identified in available historical weather record. The predicted impacts on demands would be considered extreme relative to what would be predicted under historical spells. The magnification of dry and hot spells could be indicative of the likelihood of more severe and longer-lasting droughts occurring under future climate. There is currently not a great level of comfort in using daily climate projection data to characterize the persistence of hot and dry periods and even less confidence for discerning seasonal, annual or multi-year droughts. Once there is, however, this will enhance the ability to estimate unrestricted, drought-like demands and corresponding water supplies during potential future droughts, and thereby improve the quality of assessments of water supply reliability under future climate. Future research should also leverage ongoing research on residential and nonresidential end uses of water, as well as the emerging wealth of information available from advanced metering infrastructure (AMI) technology. Finer scale measurements of water use at an end use level could support the analysis and illustration of specific behavioral and technological origins ©2013 Water Research Foundation. ALL RIGHTS RESERVED. of observed levels and fluctuations of water use. Further development of end-use, agent-based models of water demand could offer the means to simulate detailed responses to changing climate patterns, as well as present a platform for assessing the effectiveness of specific policies and coping mechanisms for adapting to climate change. This study estimated possible climate-induced impacts on water demand for case study locations by superimposing alternative projections of climate associated with the years 2055 and 2090 upon socioeconomic and other conditions that occurred in the recent past, or, in two cases, are projected to occur by 2035. Furthermore, the climate scenarios that were addressed, while considering relevant extremes, do not reflect any judgments regarding the likelihood or relative probability that they will actually be realized. Together, these methodological constraints increase uncertainty, but also point to future areas of improvement in demand forecasting and climate scenario development, which could enhance the ability to create more suitable reference conditions for evaluating water demand impacts. Finally, this study has demonstrated that assessment of climate impacts is a complex and multidimensional challenge, which entails a number of analytical steps, each involving the collection and processing of substantial amounts of information and a host of uncertainties. Water planning and management frameworks that are adaptive and anticipatory to changing conditions offer the greatest promise for meeting these challenges and managing the effects of uncertainty. Continual measurement and monitoring of water demand and climate trends should become an established part of the water industry’s research and development portfolio. ©2013 Water Research Foundation. ALL RIGHTS RESERVED.