This study aims to analyze water demand among households in Carcar City, an urban city in southern Cebu that experienced an unparalleled population and economic growth after its cityhood in 2007. This situation put pressure on the Carcar Water District (CWD), the major water provider in the city, to expand its service capacity. Policy implications for water demand management are drawn from the findings of this study. Hard and soft mechanisms that can be jointly undertaken by the water district and the local government unit are recommended to better manage water demand in Carcar City.