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There are a wide variety of fixtures and appliances that will help you reduce your water use. In most communities, this will allow you to save money on both your water and sewer bills. Reducing your use of hot water will also save the cost and energy of heating that water.
You can achieve a significant savings in overall water use, and hot water use in particular, by installing low-flow showerheads and faucets. Because showers use 37% of the hot water in typical U.S. homes, all showerheads now sold in the United States must meet the federal efficiency standard of using at most 2.5 gallons per minute. Many new showerheads meet this standard with an increase in performance; this will be particularly noticeable to owners of older homes with poor water pressure.
While you're replacing your old showerheads and faucets, take the time to also repair leaky faucets and showerheads. A leak of one drip per second can cost you $1 per month.
You can also save water by taking more showers than baths. Baths use the most hot water in an average household. You use 15 to 25 gallons of hot water for a bath and less than 10 gallons during a 5-minute shower.
Credits: US Department of Energy (http://www.eere.energy.gov/consumerinfo/heatcool/hc_reducing_water_use.html)