Mahone Bay is trying to solve a mystery — its drinking water is disappearing.

New meters installed by the South Shore town four years ago show just half the water being pumped from its treatment plant into municipal pipes is actually making it to the faucets of households and businesses.

Deputy Mayor David Devenne says it appears water is leaking from the underground distribution system and the town is now trying to piece together exactly where the problem spots lie.

"It's suspected that it is in the aging infrastructure of the piping in the town, as well as in the various valves that control the zones and control the water to the houses," he told CBC Radio's Mainstreet.

But not everyone is so sure Mahone Bay has such a large water loss problem on its hands. The town's chief administrator, James Wentzell, says he will be meeting with water staff next week to run through the numbers and pick their brains about what might be happening.

"Up to this point, I haven't been convinced that the meters are right," Wentzell said. "And unless I know that the meters are correct, I'd be just chasing ghosts."

If it is true that Mahone Bay is losing half its water, then it is in a significantly worse spot than most other municipalities.

Some water leakage is expected from underground pipes. Still, an Environment Canada study from four years ago estimated Canadian water utilities lost an average of just 13 per cent of water to leaks and maintenance, such as flushing.

Devenne says it appears the town is losing roughly $50,000 worth of treated water a year. If that money could be saved, it would shave about 10 per cent off a customer's water bill, Wentzell says.

Call in the aquaphones

The problem has been tackled elsewhere, including Halifax, which is considered a leader in leak detection and prevention. Halifax Water monitors for unusual changes in water pressure. When detected, specially-equipped crews are deployed to the area to find the source.

They use devices called aquaphones to listen at fire hydrants and along water mains for the sound of leaks. Once found, crews are brought in to dig up the road and make repairs.

Mahone Bay has brought in similar sound equipment to begin figuring out the source of their leaks. Some small leaks have been located, but nothing major, Wentzell says.

And fixing it all could be an expensive proposition. Devenne says some of the infrastructure is 50 to 60 years old, and parts lie under private property.

"A lot of pipes now go under private property," Devenne said.

"They go through people's lawns, it goes underneath stands of trees that weren't there 40 years ago. So it can become an issue as to how we're going to fix those different piping system."