Most ICI customers find initiatives that save water and conserve energy more attractive than initiatives that save water alone. Initiatives that do both typically have shorter pay back periods. Frequently, there are energy rebates available to further offset the costs, and equipment retrofits usually involve standard, off-the shelf technologies, instead of the detailed engineering evaluations required by recycling/reuse projects. Consequently, initiatives that save water and energy may provide excellent opportunities for water efficiency programs to promote conservation. Measures that increase the evaporative transfer efficiency also save water by reducing evaporation losses. This paper discusses the application of variable speed drives (VSD) in cooling tower fans to improve evaporative transfer efficiency and increase overall energy efficiency. The paper also presents proposed Code changes in the States of California and Oregon to further the implementation of VSDs at new facilities, as well as the economic advantages of retrofitting existing cooling towers with energy and water efficient equipment. The paper also presents a case study that reports ICI customers' comments and experiences regarding implementation of cooling tower water/energy initiatives. Advantages associated with the use of VSDs in cooling towers include: energy consumption reduction up to 75% for the same heat rejection capacity; water consumption reduction up to 25%, without increasing the number of concentration cycles; elimination of splash-out water losses due to the fans frequently being turned off and on; virtual elimination of mechanical shock and noise pollution issues; and, steady cooling tower temperatures, which produce additional energy savings at the plant's chiller equipment. Includes figures.