This report presents an economic framework for utilities to use in recommending water-saving devices that are cost-effective for homeowners. A variety of devices designed to save water used in water closets, showers, and indoor faucets are described in terms of their costs and benefits. The cost components considered are acquisition, installation, maintenance, and replacement costs. Benefits considered are water savings, avoidance of wastewater treatment, and energy savings in the case of reduced hot water use. A critical factor affecting the dollar value of benefits to homeowners is the price they pay for water. An analysis of water rate schedules, based on a national sample of 90 water utilities, indicates that homeowners' actual benefits from saving the last unit of water (as measured by its marginal price) are considerably lower than the average price paid for water. Thus, estimated water bill reductions will frequently be overstated if calculated on the basis of average price. The economic framework for selecting devices evaluates both mutually exclusive and compatible devices that are either modifications of existing plumbing fixtures or features of newly installed fixtures.