Answer
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Work Step by Step
If the water is allowed to collect in a storage tank after a few floors under atmospheric pressure , the maximum pressure in each pipe gets limited . Otherwise, in tall buildings , the pipe at the bottom would be under very high pressure which might not be safe for holding the water .
Another advantage of this system is that the pumps would not be working continuously. They will work only when the water in the storage tanks are drained to a certain level. This reduces the cost of electricity.