There is uncertainty in virtually all variables that drive the forecasting process: population and household formation, employment and industrial growth, income and water use characteristics by customer sectors, conservation targets and performances, and weather. The key to accurate forecasting is to isolate or specify the impacts of each variable so that changes in water demand attributable to changes in the variables over time can be accurately included in the forecasts. The objective of this paper is to briefly discuss the major methods of demand forecasting, and then concentrate on measuring conservation performance and integrating conservation targets into long-run demand projections.