The analytical framework of demand management proposed here is based on end-use accounting. This system can facilitate an extensive analysis of the existing and future demands of end users, including estimations of water savings from passive, active, and emergency demand management measures. However, in order to implement this framework into planning practice applications, it is necessary to change the direction of the present demand modeling research by focusing more investigations on modeling end-use demands. The enhanced know-how on demand management will allow water planners to close the projected gap between baseline water use forecasts and normal yields of supply sources by selecting a least cost combination of demand-side and supply-side alternatives, as well as by balancing the investment cost of long-term drought protection alternatives with the expected costs of coping with water shortages during future droughts.