The suburb cut consumption per household by 26 per cent, from 480kL in 2010-11, to 355kL in 2011-12.
North Coogee was the most improved suburb, with a 28 per cent reduction to 233kL per household.
Water Minister Terry Redman praised the efforts of residents as he revealed the suburbs that used the most and least water in the past year.
Inner-city suburbs were the lowest users, while Peppermint Grove, Gooseberry Hill, Jane Brook and Iluka households guzzled the most.
Harrisdale was the seventh highest-consuming suburb, with its 1473 households using 362kL each.
Mr Redman said home water use varied due to factors including block size, whether new gardens were being established and the number of inhabitants.
‘Perth residents have reduced their water use by about 30 per cent over the last decade, but we are still the second highest capital city for water use in Australia,’ he said.
‘We are aiming to reduce each person’s annual water use from 135,000 litres to 125,000 litres by 2030.’
Mr Redman said Perth’s second driest June on record was a reminder of the importance of winter sprinkler bans, which saved the city more than four billion litres each year.
The 2013 ban remains in place until the end of August.