Batch plant H2O meter shall indicate its deliveries in gallon and subdivisions on a gallon. The max value of the smallest measurement unit of registration, if the delivery rate is less than 100 gallons, minute, shall not be greater than:

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The key idea is measurement readability and resolution of a batch water meter. When a meter shows deliveries in gallons with subdivisions of a gallon, the smallest division you can read determines how precisely you can record small deliveries. If the delivery rate is less than 100 gallons per minute, the smallest registration increment should not be larger than one-tenth of a gallon. That finer granularity keeps rounding errors from becoming significant and ensures the measured amount matches the actual amount closely enough for batching and billing.

Choosing one quart (0.25 gallon) or larger subdivisions would allow bigger rounding errors for small deliveries, making measurements less precise. A half-gallon or a full gallon as the smallest unit would be even coarser, increasing potential under- or over-reporting of the delivered water. Therefore, one-tenth of a gallon is the appropriate maximum smallest unit to maintain adequate precision at lower delivery rates.