The study determined water consumption and its variations in Koforidua based on data from three hundred and eighty (380) metered domestic customers and seven (7) metered second cycle educational institutions out of the eight thousand three hundred (8300) customers of Ghana Water Company Limited (GWCL) in Koforidua, Ghana using data from 2008 to 2012. The study found that consumption of water supplied by GWCL two years after an increase in production was 72 l/c/d which represented a changed of 48% when compared to what pertained two years before the increase in production. Those in the middle income groups consumed 37% more of the water than those in the low income groups. Some customers were found to rely on other sources of water to supplement their water demand. January had the highest monthly demand with a peak factor of 1.07 while June had the lowest monthly demand with a peak factor of 0.91. The study found some significant differences in the water bills of customers between periods when they had functioning water meters installed and periods when they were given flat (estimated) rates even after the new plant. Whereas the average consumption of the former was 76 l/c/d, the average consumption of the latter was 112 l/c/d, a difference of 49%. Finally, the study recommended a regular review of the flat rates given to customers during periods when they do not have functioning water meters installed to measure their consumption so as to keep their estimated bills within reasonable range and further recommended the need for customers to be sensitized on water management and awareness practices as only few customers were found to engage in such practices.