This article discusses how benchmarking has developed into a useful tool by which the water industry can evaluate itself. Specifically, benchmarking has become an important way for the water industry to assess utility operations and compare performance with that of other utilities. Topics discussed in this article are: the definition of benchmarking; the difference between metric benchmarking and process benchmarking; the five major reasons why the water industry is being held accountable for more than just supplying safe drinking water; how the experience of Xerox Corporation spurred many companies to use benchmarking techniques; the five major barriers to benchmarking; the eight-step benchmarking process; and, how management uses benchmarking for specific tasks. Includes 7 references.