Population and economic growth are increasing the demand for water, while climate change, pollution and over extraction of groundwater are decreasing the world's fresh water supply. Neither leveling growth nor technological innovation will be able to stretch the existing supplies significantly; hence, it is imperative that demand side management techniques are used for water conservation. This dissertation aims to explore the potential of residential water conservation in Dhaka with reference to the roles of water tariff structures, regulations and water efficient fixtures. Primary data collected from 60 middle/upper middle class households (HHs) in Dhaka reflects that on average HHs spend 1.15% of their monthly expenditures on water with a median of Tk 350 (USD 4.40) per month. A typical HH of 4-6 people consumes about 2000 litres/day. Water conservation is a neglected concept in Dhaka. Despite the wide availability of efficient fixtures in the market, very few HHs have installed them. More than 90% of all connections are domestic, of which 70% are metered. Accurate pricing through 100% metering, implementation of regulations and greater awareness can promote conservation.