The easy part of this equation is that “efficiency = conserved water,” a goal that for which political and practical pressures are increasing almost daily, especially here in the arid West. However, making use of that conserved water under our current water laws and policies is an instant recipe for controversy. This presentation explores today’s legal and political barriers and what’s needed to achieve a win-win solution that allows the water suppliers and users to benefit from water savings that are achieved as a result of their substantial investments in efficiency improvements. An actual example of one such solution is also examined.