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Pinhole leaks and the damage associated with their repair have high financial, emotional, and time costs. The authors evaluated the factors influencing the occurrence and costs of pinhole leak corrosion in suburban Washington, D.C. A mail survey was used to elicit information about experiences and repair costs associated with pinhole leaks. Pinhole leak occurrences were found to be associated with plumbing type, property age, pipe failure history, and dwelling distance from a water treatment plant. Information on factors associated with pinhole leak incidence and costs can be useful to water utility managers in formulating policies and programs to reduce pinhole leak occurrences and the negative financial and emotional impacts of corrosion on individual households. Faster responses to pinhole leak outbreaks by utility managers and policymakers would reduce the costs of pinhole leak repairs. Expanding state-funded property insurance to cover damage from leaks when private insurance coverage is inadequate would also be beneficial. The predictive equation will also provide utility managers with the basis for predicting such leaks in their service areas. Includes 35 references, tables, figures.