Executive Order 13123, issued in June 1999, directed Federal agencies to develop and implement methods to improve water-use efficiency at government owned facilities. Specifically, the order required all federal agencies to identify their existing water consumption and to establish a goal for reducing that consumption. Under the leadership of the U.S. Department of Energy's Federal Energy Management Program (FEMP) and National Renewal Energy Laboratory (NREL), representatives from Federal agencies established a working group to recommend guidelines and methods for achieving the mandated water efficiency improvements. A review of Federal water use revealed the complications typically associated with assessing water usage. For example, most of the buildings were not separately metered, making it difficult to identify areas in which water usage was greatest and to prioritize those areas for improvements. Frequently, the infrastructure was aging, and capital improvements and maintenance had been deferred for many years. Because of billing practices, many agencies had no idea how much water was being used, or at what cost. It was also apparent, however, that some Federal agencies had already implemented many water efficiency improvements at various sites. When establishing the baseline for water usage, it was important to credit these successes and not penalize facilities that were already conserving water. It was also important to remain focused on cost-effectiveness, since program implementation is usually financed through normal Federal budget procedures. In 1999, FEMP established a method to identify baseline water usage and a water efficiency improvement goal. The goal established 10 Best Management Practices (BMPs) for Federal water efficiency, similar to those developed under the California Urban Water Conservation Council's Memorandum of Understanding. The Federal BMPs focus primarily on office water use, landscaping, heating and cooling, leak detection, and education and emphasize cost-effectiveness, flexibility, and creativity. Includes 10 references, table.