Water flow management question

[lemmethink]

If a water source such as a liquid pump or purifier splits the flow and one end is going into no where, you still see the water pulses go to the unconnected end, ie using a T split and only one part of the T is connecter.

The question is the water being lost at this point? if I goes into a valve, which would limit the output flow pressure is the "unused" water simply not flowing or is it lost?

In other words, is there conservation of water? if we pump 1000kg of water and only see 500kg being used, is the other half simply wasted?

Anyone have any idea?

Thanks.

BTW: what is the acceptable flow rate for each building? there isn't any marked usage for each item to adjust the pressure.