The freshwater consumption within domestic, agricultural, and industrial sectors has significantly increased over the last two decades, resulting in severe shortages particularly in many arid regions. The manufacturing industry consumes between 20-40% of annual freshwater abstracted in various developed countries. The challenges in efficient use of water are exacerbated by lack of transparency in water usage and waste management in majority of existing manufacturing applications, in particular within SMEs. This paper outlines an integrated methodology for systematic modelling of water consumption within manufacturing applications, and describes a simulation tool developed to improve water usage efficiency.