Recently, a ''memory based'' approach towards various kinds of problem
s has been proposed. The underlying principles of the memory based app
roach are : (1) storing past examples in a memory. (2) searching ''nea
r'' examples to a given input in a memory. In this paper, we apply the
memory based approach to water demand forecasting, and present a hybr
id method which consists of MBL (Memory Based Learning) and the conven
tional multiregression. In the memory based method, the distance metri
c is crucial. In our method, the local distance metric is defined from
examples when an input data is given then the neighborhood of the inp
ut is determined based on the distance metric. If there exist examples
within the ''neighborhood'' of the input data, then the forecast is g
iven by MBL. Otherwise, local multiregression is used. We applied this
method to the daily water demand forecasting. The forecasting results
by our method are approximately 5% better than those by the multiregr
ession method. Especially, when there exist past examples in the neigh
borhood, namely in the case where MBL is applicable, the results are a
pproximately 10-30% better than those by the conventional multiregress
ion.