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This article discusses tremendous opportunities for water supply and wastewater treatment authorities to contribute to long-term CO<sub>2</sub> emissions reductions through better water resource management. With these opportunities also comes an enormous responsibility to find a balance among energy efficiency, water resource management, and CO<sub>2</sub> emission reductions. This balance is unique to each municipal water provider and depends on numerous factors. This article examines three components of the water energy link: subregional energy generation; water resource availability; and, distribution system upgrades and conservation programs. By using examples from three municipal water supply authorities (Chicago, Illinois; Arvada, Colorado; and James City County, Virginia) with markedly different geographical and water resource situations, variations in need and the potential for water conservation and CO<sub>2</sub> emission reduction is demonstrated. Includes 9 references, figures.