Previously water authorities paid little attention to when and for what purpose water was being used once it passed through the customer meter. However, in recent times, growing concerns about the high cost of sourcing new supply, infrastructure upgrades and rising operating expenditure is prompting some water authorties to take an interest in reducing water losses on the customer side of the meter. Advanced meter reading technology in the form of smart metering has been heralded as a new management tool to both manage customer demand and customer water loss through leakage. Through data analysis it is possible to identify leakage on the customer side of the meter, however there is currently a vacuum in methodology and policy on how to reduce and manage internal water losses. This paper reports on the results of research using smart metering technology to understand the incidence of household leakage during a typical reading cycle. If the types of leaks and the nature of associated water losses are clearly understood it is possible to develop new policies and methods to manage this loss within the framework of existing demand management options available to water authorities and government agencies.