The Department of Energy's Federal Energy Management Program (DOE/FEMP) is considering the development of a technology-specific Super-Energy Saving Performance Contract (ESPC) for water conservation. Prior to the development, however, FEMP requires the completion of a market assessment to better understand the water conservation opportunities and the strategies available for capturing them. Thus, a market assessment has been undertaken to evaluate the water conservation opportunities and answer the key questions necessary for FEMP to make recommendations on whether or not to proceed with strategies for water conservation primarily through the development of a technology-specific water conservation ESPC. This paper describes the approach, outcome and recommendations of this assessment. Includes 16 references, tables.