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Water demand is increasing around the world, but supplies are "shrinking" because of population growth and new demand. By the middle of the twenty-first century, it is estimated that half of the world's predicted population of 10+ billion people will live in urban areas, and experts have pegged the shift of the world's population from rural to urban dweller to occur this year or next. Water loss from distribution systems is a problem faced by all water utilities, but it is exacerbated in developing countries where illegal connections, meter tampering, and metering inaccuracies generate even greater losses. The AWWA/IWA water audit/water balance tool is the most widely used method for measuring water loss from distribution systems. The water district in Kampala, Uganda, provides an example of the challenges faced by developing countries and shows that even though resources may be inadequate and data unreliable, it is possible to assess water loss and develop appropriate strategies and tools as a step toward effective management of water losses. Includes 30 references, tables, figures.