Objectives The overall objective of the study was to develop economic information on water use in retail and service (commercial) busi- nesses. More specifically, the objective was to identify the factors affecting the use of water by individual businesses and to esti- mate the demand for water for these users. Earlier attempts at estimating water use by commercial establishments [2, 5, 11, 20, 21, 32] are discussed in Luppold [15] and Lynne, Luppold, and Kiker [19]. Only the study by Headley [11] included an attempt to isolate the impacts of price. BUSINESSES STUDIED Four types of businesses were studied (Table 1). Restaurants, bars, and motels were picked because it was expected these busi- nesses were large consumers of water. Furthermore, the Miami area with its large tourist trade has a great number of these businesses. Department stores and grocery stores were also in- cluded, to represent other major groups of users. Data was also collected from furniture stores, drug stores, hardware stores, and men's, women's apparel stores [15]. In- sufficient data points were received to accomplish a reliable esti- mation process for each of these business types. Also, various attempts at grouping these types of business establishments in different manners were unsuccessful. This indicates that pro- duction functions and processes are quite different between and among different types of commercial establishments, suggesting data collection and model estimation must be accomplished at Table 1.-Business types by model group. Business Population' Model Group (number of stores) Department stores 177'' Grocery stores 1,754' Motels and hotels 793 Restaurants, bars, and lounges 2,452'' 'From the 1972 Census of the Miami Standard Metropolitan Statistical Area (SMSA) [28, pp. 10-17; 29, pp. 10-16]. No census information was available for the Florida Keys since it was not considered a SMSA in the 1972 Census. includes department and variety stores. 'Includes grocery stores, supermarkets, and convenience food stores. 'Includes fast food establishments. A total of 491 of these establishments were drinking establishments.