The extent to which individuals’ beliefs about environmental issues are accurate is vitally important, given the myriad ways in which individual behaviors influence environmental outcomes (Dietz, Gardner, Gilligan, Stern, & Vandenbergh, 2009; Vandenbergh, Barkenbus, & Gilligan, 2008). This article examines how people’s common misperceptions of the environmental impact of energy and water use behaviors influence behavioral choices and environmental outcomes. We first discuss how misinformation fits within traditional theories of environmental behavior change, and we examine common misperceptions that lead to unnecessary resource use and related environmental problems. We next discuss promising but understudied misunderstandings, such as people’s beliefs about food waste, a topic that has received increased attention in recent years and implicates both energy and water use. Finally, we review the empirical evidence for the effectiveness of efforts to correct misperceptions and highlight effective approaches to addressing misperceptions that target mass audiences, including informational strategies (e.g., informational campaigns), social influence interventions (e.g., social normative feedback), and policy recommendations (e.g., carbon labeling of consumer products). Correcting people’s common misperceptions surrounding energy and water use could be an integral part of a successful strategy to reduce consumption in the United States and across the world.