Learning from the Field: Reducing Non-Revenue Water through Digitisation at Public Distribution Points

Written By Philip Stubbings

Introduction

Unlike some models of development that focus on rapid delivery and short-term outputs, DMDO is deeply embedded in the communities it serves and is committed to ensuring that its work remains viable long after the initial investment has been made.

Many water projects can claim to have reached a large number of people with clean water—but what happens five years later, when infrastructure breaks down or payment systems stop working? DMDO believes that true success lies not just in coverage, but in durability: whether communities continue to access water reliably, affordably, and sustainably over time.

This is the first in a series of “Learnings from the Field” publications, in which DMDO reflects candidly on its experiences—what has worked, what has not, and what changes it has made along the way. DMDO is both data- and human-experience-driven, and believes in radical transparency. Some learnings, like this one, represent major shifts. Others are small adjustments. But all of them demonstrate DMDO’s commitment to continuous improvement and practical, community-centred innovation.

The Problem: Non-Revenue Water and Lack of Transparency

In Lindi District, many rural water schemes were facing a persistent challenge: non-revenue water (NRW)—water that was produced and distributed but never paid for. NRW is a common issue in the water sector and includes losses due to leakage, theft, or failures in billing and collection. In this case, manual metering and cash-based collection at public water points were the source of the problem.

CBWSOs (Community-Based Water Supply Organisations) struggled with:

  • Inaccurate or delayed readings from manual meters;

  • Households drawing more water than they paid for;

  • Missing cash from fee collectors;

  • Water points being closed when staff were unavailable.

“There were times when we couldn’t repair water infrastructures because we had no funds,” recalls Idrisa Abilahi, CBWSO Manager. “Some people would take more water than others, causing conflicts. It was a tough situation.”

Between May and September 2024, CBWSOs relying on manual systems were collecting only around 46–64% of the revenue they should have been receiving. In one case, collection dropped as low as 8%. This made operations unsustainable and blocked efforts to reinvest in infrastructure or expand access.

The Solution Identified: Digitisation at Public Water Points

To address these issues, DMDO developed and piloted a digitised payment system using prepaid water meters at public distribution points.

These meters:

  • Allow users to pre-load water credits onto smartcards;

  • Deduct credits automatically when water is collected;

  • Eliminate the need for cash handling or in-person fee collectors.

This digitisation provided a reliable, transparent and tamper-resistant solution. It also meant that all water used is paid for upfront, and everyone receives equal access.

Action Taken: A Pilot in Makonde

In partnership with RUWASA and with support from the Grille Foundation and World Vision, DMDO piloted the approach in Makonde CBWSO, installing 36 prepaid meters at public water points.

The results (May–September 2024):

  • Water use increased from 2.55 million to 4.21 million litres per month;

  • Expected revenue rose from TZS 5.1M to TZS 8.4M;

  • Revenue collection efficiency reached 98%, with only 2% leakage remaining from a few manual meters still in use.

“Before, some people would overuse water while others got nothing,” said Bi Mariamu Seif, a local resident.
“Now, we all get water fairly and our community is happier.”

This success has led to a wider rollout of prepaid meters across DMDO’s project areas, forming the backbone of its Water Reinvestment Programme.

Resolution: Laying the Foundation for Long-Term Sustainability

What makes this breakthrough especially significant is that it directly supports DMDO’s model of recovering and reinvesting capital.

DMDO is not just delivering infrastructure—it is investing in systems. Under its water reinvestment model, the capital it invests is repaid over time through a share of the revenue collected from water sales. This creates a sustainable funding stream to maintain infrastructure, support CBWSO operations, and expand access to clean water for more communities.

None of this would be possible without transparent, accurate and accountable revenue collection—something that only became feasible through the digitisation brought by prepaid meters.

“For us, the prepaid meter was not just a tool—it was a breakthrough,” says Victor, a DMDO Programme Manager.
“It unlocked the possibility of long-term sustainability, something the rural WASH sector has been chasing for decades.”

“We are grateful to the Grille Foundation for backing us when this idea was still just on paper,” adds Method, from DMDO’s operations team.
“Their support allowed us to test, learn and prove that it works.”

A spokesperson from World Vision Tanzania noted:
“The success of this pilot with DMDO has opened our eyes. We’re now exploring how to integrate prepaid metering into our own WASH projects to improve service and sustainability.”

Looking Ahead

This is the first in a series of DMDO’s Learnings from the Field—practical insights from real communities, grounded in data and everyday experience. Some of these stories, like this one, reflect major innovation. Others are modest but important shifts in how things are done.

All of them reflect DMDO’s commitment to transparency, reflection and continuous learning. This is what it means to be locally rooted, long-term focused, and always asking: how can we do better?

Philip Stubbings