Data‐driven modeling to enhance municipal water demand estimates in response to dynamic climate conditions

Altered precipitation and temperature patterns from a changing climate will affect supply, demand, and overall municipal water system operations throughout the arid western U.S. While supply forecasts leverage hydrological models to connect climate influences with surface water availability, demand forecasts typically estimate water use independent of climate and other externalities. Stemming from an increased focus on seasonal water demand management, we use the Salt Lake City, Utah municipal water system as a test bed to assess model accuracy versus complexity trade‐offs between simple climate‐independent econometric‐based models and complex climate‐sensitive data‐driven models to average to extreme wet and dry climate conditions—representative of a new climate normal. The climate‐independent model displayed low performance during extreme dry conditions with predictions exceeding 90% and 40% of the observed monthly and seasonal volumetric demands, respectively, which we attribute to insufficient model complexity. The climate‐sensitive models displayed greater accuracy in all conditions, with an ordinary least squares model demonstrating a measurable reduction in prediction bias (3.4% vs. −27.3%) and RMSE (74.0 lpcd vs. 294 lpcd) compared to the climate‐independent model. The climate‐sensitive workflow increased model accuracy and characterized climate‐demand interactions, demonstrating a novel tool to enhance water system management.