Water conservation is frequently discussed in terms of the effectiveness of particular programs such as retrofitting toilets or an education program. However, before such programs can take place and for them to be effective, the correct institutional mechanisms need to be in place. In England and Wales the Environment Agency's recent National Water Resources strategies have identified the continuing need to manage the demand for water over the next twenty-five years. The main institutional mechanisms have been central government policy, the role of local government, economic regulation, environmental regulation, national legislation, the role of water utilities, the role of non-governmental organizations, waste minimization initiatives and collaborative research programs. This paper describes each of these mechanisms and the contributions they have made to the goal of water conservation. With many in place and others on the horizon the scene is set for a steady growth in water conservation activity. This paper assesses what has been achieved by considering changes in demand components and considers whether these current arrangements will serve England and Wales well in the future. Includes 15 references, tables, figure.