Efforts to reduce energy costs of water distribution should focus on the area of greatest consumption-electrical energy for high-service pumping. The economic importance of energy cost reduction measures may double, or perhaps triple, within the life of current distribution system improvements; overall, the greatest price increase is expected in the demand charge area. Effective and reliable energy cost reduction methods appear to be (1) reduction of service pressure, (2) the use of gravity feed storage to smooth pumping variations and reduce peak electrical demand, (3) the use of engine-driven pumping units to reduce peak electrical demand, (4) increasing the operating efficiency of pumping units, and (5) power factor modifications. Includes 19 references, figures.