Concept:
Per capita water demand is the average quantity of water required per person per day.
It is influenced by several factors such as:
• Climatic conditions
• Size of the town
• Quality of water
• Industrial and commercial activities
• Method of water supply
• Metering and charging system
Among these, industrial demand has the greatest influence because industries consume large quantities of water.
Step 1: Understand per capita demand.
Per capita demand is expressed as
\[
\boxed{\text{Litres per capita per day (LPCD)}.}
\]
The presence of industries significantly increases the total water requirement of a town.
Step 2: Identify the dominant factor.
Compared with the other listed factors,
industrial demand contributes the maximum increase in water consumption.
Hence,
\[
\boxed{\text{Industrial demand has the maximum effect on per capita demand}.}
\]
Therefore, the correct option is
\[
\boxed{(D)\;\text{Industrial demand}.}
\]