Water demand functions for the paper and chemical industries in the state of Arkansas were estimated utilizing data collected from individual plants throughout the state. Regression analysis was used to estimate demand functions from a data base which included information on intake and gross water use by source, recirculated water use, costs of acquiring, treating, and discharging water, plant output, employment, and level of technology. The demand for intake water was estimated as an exponential function of average water costs and the level of technology primarily. Price elasticities of demand were estimated as approximately equal to one for both industries. The results of this study could be used to determine the effects of various public policies on the withdrawal of water for industrial purposes
