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ABSTRACT The objective of this study was to analyze the environmental and economic impacts of the implementation of water-saving equipment in residences in the municipality of Caruaru-PE as a measure of water conservation and mitigation of the drought effects that have been devastating the region along the past five years. For this purpose, eight neighborhoods were selected and their populations were estimated along the years of 2015 and 2035. Subsequently, the water consumption per capita, water volumes consumed with the use of conventional sanitary equipment and with the use of water-saving equipment were calculated, obtaining the volume of water saved. For the estimates of cost for the services and material required for the installation of water-saving equipment, tables of price compositions for budgets were consulted and adapted. The results demonstrated that it is possible to save up to 40% of consumed water only with the implementation of water-saving equipment, with a mean return time of six and a half years. Therefore, it is possible to understand that the use of water-saving equipment represents an important instrument of water management.