This study examines whether water conservation is actually being incorporated into municipal water management practices. The development of a conservation policy from a general goal declaration to specific programmatic practices is reviewed for a Texas state water agency, the Texas Water Development Board. From January 1986 through September 1989, 102 political units in Texas applied to the Board for water-related loan funds and thus were required to implement municipal water conservation plans. Two aspects of this conversation policy are assessed: one, the Board's procedural arrangements for the development and review of water conservation plans, and two, the conservation plans of each political unit. It is concluded that Texas state water managers, and local manager also, have yet to incorporate conservation as a significant planning tool for the achievement of water management goals.