Population and economic growth are increasing the demand for water, while climate change, pollution and over extraction of groundwater are decreasing the world’s supply of fresh water. While technological and management reforms can increase supply, sustainable development calls for water conservation. This paper explores the potential of residential water conservation in Dhaka using water efficient fixtures. Primary data collected from 60 households in Dhaka reflects that on average households spend 1.15 percent of their monthly expenditures on water bills with a median of Tk. 350/month (USD 4.40/month). A typical household of 4-6 people living consumes about 2000 litres/day. Water conservation is a neglected concept in Dhaka, and despite the wide availability of efficient fixtures in the market, very few households have installed them. Under this scenario, more accurate pricing through 100 percent metering, implementation of regulations and greater awareness are necessary to promote domestic water conservation using water efficient fixtures.