with regard to water use efficiency the audit also found that the high level of losses in distribution networks in most municipalities is cause for concern. cities with excellent levels of performance have loss rates under 15 percent. in brazil however the average loss rate was 37 percent in 2013. moreover incentives to reduce water use are insufficient. water fees are in place but are too low to change users behaviors. the country has not adopted a water effciency labeling scheme to encourge consumers and the industry towards products that consume less water, and gaps in regulation inhibit the direct use of reclaimed water for non-industrial purposes.