NFPA 13 (2002 edition)
A.15.2.1 Care should be taken in making water tests to be used in designing or evaluating the capability of sprinkler systems. The water supply tested should be representative of the supply that might be available at the time of a fire. For example, testing of public water supplies should be done at times of normal demand on the system. Public water supplies are likely to fluctuate widely from season to season and even within a 24-hour period. Allowance should be made for seasonal or daily fluctuations, for drought conditions, for possibility of interruption by flood, or for ice conditions in winter. Testing of water supplies also normally used for industrial use should be done while water is being drawn for industrial use. The range of industrial-use demand should be taken into account. In special situations where the domestic water demand could significantly reduce the sprinkler water supply, an increase in the size of the pipe supplying both the domestic and sprinkler water can be justified.
I believe the new 2007 edition added additional wording to accommodate domestic demand. However, I don't have ready access to the code yet.