Supplying cold and hot water to population is one of the key tasks of municipalities. It is important that utility companies apply efficient methods and technologies, ensuring precise accounting of supplied and consumed volumes of water. Thus, clients pay for the amount of water actually consumed and not for the hidden leaks or stolen volumes of water. That is why Kraslava, Utena, Preili and Livani municipalities and their water utility companies have decided to collaborate on this project.The aim of the project is to develop an automated meter data reading system for control of supply and consumption of cold and hot water. New, precise water meters, modern meter data reading and transmitting equipment will be installed at building entrances, in offices and in apartments. Meter data will be collected and processed at data centres in Kraslava and Utena. Such modern system will substantially improve water consumption measuring and analysis; it will also help find bursts and leaks in pipes. Clients themselves will no longer be obliged to send water consumption data to utility companies, as the system will collect data and send bills to customers automatically. So far municipality and utility representatives have organised several introductory seminars to inform on technical solutions applied in towns where project will be implemented.