As water resource is becoming scarce, water conservation is being promoted at all levels. Water Audit is the first step towards water conservation. A good Water Audit helps to analyze water use and identify ways to make it more efficient, and can save millions of litres of water every year. The Water Audit provides a breakdown of the how, when and where of water use, reviewing domestic, sanitary, landscaping, and process water use and identify ways to increase water-use efficiency. Directly, water audits can help identify ways and means to conserve water and thus can help is reduce costs that are associated with water use and its treatment, particularly in water intensive industries. Water Audits can also help identify means of potential watershed management, tapping rainwater and conserving precious treated drinking water for non potable uses. Water conservation is being practices in households, housing colonies and in large companies, and a simple water audit can prove to be an essential tool to manage water resources in an efficient manner.