This study explores the relationship between municipal water use and an array of climate, economic, behavioral, and policy variables across the contiguous U.S. The relationship is explored using Bayesian‐hierarchical regression models for over 2,500 counties, 18 covariates, and three higher‐level grouping variables. Additionally, a second analysis is included for 83 cities where water price and water conservation policy information is available. A hierarchical model using the nine climate regions (product of National Oceanic and Atmospheric Administration) as the higher‐level groups results in the best out‐of‐sample performance, as estimated by the Widely Available Information Criterion, compared to counties grouped by urban continuum classification or primary economic activity. The regression coefficients indicate that the controls on water use are not uniform across the nation: e.g., counties in the Northeast and Northwest climate regions are more sensitive to social variables, whereas counties in the Southwest and East North Central climate regions are more sensitive to environmental variables. For the national city‐level model, it appears that arid cities with a high cost of living and relatively low water bills sell more water per customer, but as with the county‐level model, the effect of each variable depends heavily on where a city is located.
