How Does Water Submetering Work?
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
A water submeter on each unit measures that unit's use under the master meter, so each resident is billed for the water they actually consume.
How does water submetering work?
Water submetering works by installing a water meter on each unit, beneath the property's single master meter from the utility. The submeter measures how much water that unit uses, and each resident is billed for their own consumption rather than an even split. Modern water submeters read wirelessly and report daily, so billing is accurate and leaks, such as a running toilet, surface within hours. Common-area water is measured separately. Once residents pay for their own water, usage usually drops 15 to 30 percent, and the owner recovers cost that used to come out of rent.
From master meter to resident bill
The utility reads the property's master meter. NES reads the submeter on each unit, calculates each resident's use, and sends an itemized bill. The total billed never exceeds the property's actual water cost.
Why it lowers the bill
- Residents conserve when they pay for their own water
- Leaks are caught early instead of at month end
- Common-area use is billed accurately, not absorbed
- Most installs pay for themselves in 12 to 18 months, and some sooner
Related questions
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