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A water audit (domestic/household), similar to an energy audit, is the method of quantifying all the flows of water in a system to understand its usage, reduce losses and improve water conservation. It can be performed on a large scale for a city or a state as well on a smaller scale for irrigation projects, industries, and buildings. The audit can begin with an extensive approach to generate the water balance using available data and estimates which helps in identifying specific areas to concentrate in further stages.