Can the meter be wrong?
Yes, however, the meter measures water by the flow of the water turning a gauge. Since the gauge cannot turn faster than the water pushing it, the results of a failed meter are either that the meter is not reading all of your consumption or it has stopped.

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1. Why was my water cut off?
2. Why is my bill so high? There is no way I used this much water.
3. Can the meter be wrong?
4. What should I do if my consumption jumps dramatically?