Conflicting reports in the media and common misperceptions exist about water use for ethanol production. University of Illinois researchers took a look at water used to grow corn and for ethanol production. Water is an important resource. It is a consideration and part of the permitting process when ethanol plants are built. A typical ethanol plant capable of producing 40 million gallons of ethanol per year, could use up to 330,000 gallons of water per day or 120 million gallons of water per year. This is equivalent to water used by a town of 5,000 people or a standard-sized golf course. The average home uses 107,000 gallons of water per year. An average person uses 50 gallons of water each day.