Consumers Water Company in Portland, Maine, developed and implemented a new goal-setting-performance-measurement system for its regional operating companies. The new system scrutinizes a company's past and future performance in relation to that of its peers and itself. Implementation of this new, generalizable system has allowed Consumers Water Company to evaluate its historical performance as a holding company versus that of its peers, as well as establish feasible, aggressive targets for its individual regional companies based on their inherent capabilities. The methodology appears to be readily adoptable by other water utilities. Includes 6 references, table, figures.