“Disrupt Battlefield finalist Valor Water is graduating out of Y Combinator just in time to help solve the world’s water crisis. Valor provides a suite of business-intelligence tools for water utilities.

In a drought, consumers are encouraged to conserve water and they often do. In California this past December, conservation was up from 10 percent in November to 22 percent in December, in year-over-year water-use comparisons done by the State of California. Since July 2014, consumers saved 134 billion gallons of water or enough to supply 1.8 million residents with water for a year.

But with that conservation comes a challenge for utilities: decreasing revenue. For every gallon conserved in a drought, that’s one more gallon a utility is not earning money on, over time putting the provider in a very precarious financial situation. Utilities, fearing for their survival, often end up issuing rate hikes to maintain revenue. This leads to a cycle whereby consumers are no longer incentivized to conserve, as they’ll end up paying the same water bill regardless.” 

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