The U.S. Environmental Protection Agency (EPA) influences the market for plumbing fixtures and fittings by encouraging consumers to purchase products that carry the WaterSense label, which certifies those products as performing at low flow rates compared to unlabeled fixtures and fittings. As consumers decide to purchase water-efficient products, water consumption will decline nationwide. Decreased water consumption should prolong the operating life of water and wastewater treatment facilities. This report describes the method used to calculate national water savings attributable to EPA's WaterSense program. A Microsoft Excel spreadsheet model, the National Water Savings (NWS) analysis model, accompanies this methodology report. Version 1.0 of the NWS model evaluates indoor residential water consumption. Two additional documents, a Users' Guide to the spreadsheet model and an Impacts Report, accompany the NWS model and this methodology document.