28 gallons might be fairly correct. I drink at least one 20oz bottle a day during the week while at work (not as much on weekends), which comes out to around 40gal a year -- but I figure I'm above the average on water consumption.
That number is probably based on water sales though.
If you drank 500gal a year that would be over a gallon a day, even in the winter. That IS a lot.