The aim of this project was to develop a methodology to determine the effectiveness of Water Demand Management (WDM) and Water Conservation (WC) measures in developing regions and countries. The project, which was sponsored by South Africa's Water Research Commission, involved a critical examination of those applicable local (South African) conditions that guide the development of the methodology. Some of the specific challenges identified included the practical definition of linkage between the principle of increasing the supply of water through the implementation of WDM/WC measures and the unlimited needs of users, a strong culture of non-payment for water which limits the impact of economic measures, the overall lack of programmes for the repair and maintenance of water infrastructure as well as the increasing shortage of skilled human resources. Several existing related methodologies were examined in order to provide a historic and conceptual framework for the research. Selected WDM/WC case studies, both locally in South Africa and internationally, have provided useful insight during the development of the methodology. A pragmatic and easy to understand consolidated methodology has been developed that takes cognisance of the objectives of Integrated Water Resource Management (IWRM). The methodology is a consultative and consensus based approach assisted by numerous graphic based techniques, tools and examples.