In the current forecasting practice, future water requirements of a growing urban area are often represented as the product of the number of people to be served by the water system and an assumed quantity of gross per capita water use. This paper describes a forecasting approach that differs from the per capita method in two important aspects. First, it disaggregates urban water use into a large number of categories, each consisting of a relatively homogeneous group of water users. Second, it links water use in each category to factors that determine both the need for water as well as the intensity of water use. This approach is incorporated into a computerized forecasting system referred to as IWR‐MAIN. The advantages of the IWR.MAIN model over the traditional per capita method are illustrated in a case study of Anaheim, California.