The City of Kaunas utilizes groundwater as raw water for its potable water production, serving more than 355,000 people and also commercial and industrial customers. Water is collected in ground reservoirs at the well fields and forwarded by pumping stations through the distribution net. The quality of groundwater is acceptable, except for the high concentrations of manganese and iron, which exceed both local and international limits. The raw water is currently treated by chlorination.

Annual demand for water in Kaunas is c. 35 million m3, about 97,000 m3 per day. The capacity of the well fields is sufficient to meet all needs at present and in the immediate future. Demand has dropped over the past year due to the installation of individual water metres for residents and the continuing decline of production in industry.

The City of Kaunas has initiated an ambitious and comprehensive programme to improve substantialy its waste-water treatment and renovate its water and sewage facilities. This programme, under the name of Kaunas Water and Environment Project, has external financing from the European Bank of Reconstruction and Development (EBRD), PHARE and the Nordic Finance Corporation (NEFCO), as well as grant aid from the governments of Sweden and Finland.

A four-year Twinning Agreement (for the implementation phase) has been signed with the Stockholm Water Company in order to assist the Kaunas Water Company in this important transition and to facilitate the execution of the project. It is planned that the project be carried out in two periods: a priority period covering 1995-98 and a long-term period 1999-2013. The project involves the renovation and extension of the water and sewer networks, the upgrading of well fields, the renovation of booster (distribution) stations, a water saving programme, a waste-water treatment plant, sewage pumping stations and managerial assistance.

Planning of the construction of a modern waste water treatment plant in Kaunas began in 1990. A site has been selected and design parameters determined, and the construction of the plant is currently in progress. Prior to discharge, the waste water is treated in a treatment plant producing an effluent with a quality lower than that obtained in modern western plants.