If you take a close look at your water bill, you might be surprised to learn how much money is going down the drain.

A typical U.S. family of four spends about $820 every year on water and sewer fees, according to the Environmental Protection Agency, plus another $230 in energy charges for heating water.

A few inexpensive changes, such as adding low-flow showerheads and stopping leaks, might cut your monthly water bill by 20% to 30%.

Four fixes to tackle first

1. Install low-flow showerheads. A low-flow showerhead uses 1.5 to 1.75 gallons of water per minute compared with 5 to 7 gallons a minute for an older model. Simply screwing on a new showerhead might save you as much as 2,000 gallons a month, assuming two, six-minute showers a day. 

Cost: Low-flow showerheads can be found online for as little as $10, and could trim your water bill by that much in just a month or two.

Tip: Because you'll use less hot water, your energy bill should drop, too.

2. Add an aerator. An aerator is usually a fine metal mesh that screws on to the end of a conventional faucet and reduces water volume to 1 or 1.5 gallons per minute. Older faucets use 3 gallons of water per minute.

Cost: Aerators cost $3 or less, and could pay for themselves in just a month or two.

Tip: Screw on an aerator by hand to avoid scratching a faucet's finish.

3. Develop water-wise habits. Water is so cheap—a thousand gallons of water costs less than a gallon of milk—that it's easy to use carelessly. Developing a few of these water-wise habits may save you thousands of gallons a year:

• Turn off the tap when brushing your teeth.
• Garbage disposals use lots of water. Start a compost pile instead.
• Don't defrost meat with running water.
• Clean sidewalks and driveways with a broom, not a hose.
• Do dishes in a dishwasher. It uses less water than washing by hand.
• Water your lawn in the morning and you'll lose less water to evaporation.
• Adjust the sprinkler so you're not watering the sidewalk or driveway.
• Run full loads when using a dishwasher or clothes washer.
• Take showers rather than baths.

Cost: $0

Tip: You'll need the family's cooperation to conserve. Why not promise to reward them when savings start to materialize? (Ice cream cones, anyone?)

4. Fix leaks and drips. 13.7% of all water used in U.S. households is just dribbling away. To see if you're losing water this way, read your water meter before and after a two-hour period when no water is being used. If the meter moves anyway, here are four prime suspects to investigate:

• A running toilet can cost 200 gallons a day. Replacing a single part inside the tank, such as a worn-out flapper, might solve the problem. (Write down the brand and part number before you go to the store to avoid repeat trips.)
• A dripping faucet can cost 2,700 gallons a year. If you're handy, you may be able to fix the problem yourself by replacing worn-out fixtures, washers, O-rings, or loose connections.
• A pinhole leak in a washing machine hose can waste 170 gallons a day, not to mention damaging your home.
• Outdoors, loose-fitting hose couplings can release gallons of water a minute. Give these couplings an extra turn with a wrench or pliers to cut needless loss.

After making repairs, read the meter again. If it's still showing water loss, it's probably time to call a plumber.

Cost: Replacement parts for a toilet tank usually cost less than $20. Plumbers generally charge by the hour, and a house call can easily cost $75.

Tip: To see if a toilet is running silently, add a single drop of food coloring to the water in the toilet tank. If the color shows up in the bowl without flushing, there's a leak.

Longer-term upgrades that can save

Once you've covered the basics, what more can you do to conserve water? Many household products have been redesigned in recent years to conserve water.

A new washing machine or toilet might reduce your water use significantly if you currently have older models in your home. Just keep in mind that because these items are expensive (and will likely require a plumber), it could take years to recoup their cost from lowered water bills.

Here are three items that could cut your water use noticeably if you're willing to make an investment in water conservation:

• New toilets use no more than 1.6 gallons per flush, compared with 3.5 to 7 gallons for older models.
• Front-loading washing machines can use one-half as much water as older top-loading models, according to the EPA.
• Faucets that carry the EPA's WaterSense label use 30% less water than older models. You can find a list of WaterSense bathroom faucetshere.*  

Cost: Toilet: $200 and up. Front-loading washing machine: $700 and up. WaterSense faucets: $100 and up.

Tip: Before buying a new appliance, read reviews online to find a make and model that gets high marks from consumers.