Existing water conservation programs may not effectively target water users that are motivated by environmental concerns.' An earlier project, which culminated in a report dated July 2006, recognized the ongoing need for supplemental inputs of water in riparian restoration projects, which are increasingly common (Megdal et al, 2006).' Also, public concern surrounding the need to protect natural water flows is growing (Katz, 2006). This paper explores the idea that municipal water conservation may be a source of water for the environment.' In this paper, the authors propose a mechanism by which municipal water conservation could provide funds to cover the cost of acquiring and delivering water to environmental enhancement projects.' This study explores some of the basic elements and some of the challenges involved in implementing this concept.