Two Paths for Urban Water Resource Innovation

The renovated moat near Tokyo Imperial Palace has successfully integrated water reuse with a vibrant, green public space.

Image source: Getty Images/iStockphoto



Pepe Puchol-Salort

Hoffman Scholar

Jaime Barba-Sevillano

Xylem Vue Head and Idrica CEO



  • Cities have the ability to respond swiftly and directly mobilize communities, making them ideal hubs for gathering water-resource innovations.

  • Valencia and Singapore are prime examples of cities successfully implementing innovative water management solutions at the urban level.

  • When public-private partnerships, academic collaborations, and core institutions work together synergistically, water resource innovation flourishes.


As global attention to water resource issues continues to rise, cities are increasingly becoming a key battleground for water-resource innovation.

 

Cities are not only tackling challenges such as water scarcity, flooding, and aging infrastructure, but also seizing opportunities to test and roll out innovative solutions. Unlike the grand strategies at the national level,Cities have the ability to respond swiftly and directly mobilize communities, enabling them toBecoming a "practical laboratory" for new technologies.


Valencia and Singapore have embarked on two distinctly different yet equally impactful paths in water resource innovation: the former driven by private-sector leadership and entrepreneurial spirit, while the latter propelled forward through robust public institutions and a strategic national agenda. Their success demonstrates that, when rooted in a long-term vision and a collaborative mindset, either governance model can pave the way for transformative, deep-reaching change.


These two cases were thoroughly discussed at the World Water Day 2025 event held by the World Economic Forum in London. One of the activities featured the launch ofIncluding XylemIndustry leaders, including, through"Water's Future Community"Jointly authored report"The Future of Water: Mobilizing Multi-Stakeholder Collaboration to Build a Resilient System"Another activity introduced byHoffman Water Innovation Scholarship and Imperial College LondonThe collaboratively developed system toolkit, Water-BOOST.


So, what insights can these two vastly different models offer us? And how can their experiences help other cities navigate the challenges of water resources in the future?


Two cities, two models


1. Integrated Platform


Valencia, Spain, has long faced mounting water-resource pressures, primarily driven by increasingly erratic climate patterns—intensified droughts and flooding events—combined with the gradual aging of the city’s infrastructure. In October 2024, the city experienced one of its worst floods in recent years. Yet resilience has always been deeply embedded in the city’s DNA. As early as the 1960s, Valencia pioneered the relocation of its main riverbed away from the city’s core, transforming the former river channel into the green, cultural promenade that now defines the city’s iconic landscape.


In recent years, the city has embarked on a digital transformation journey. Private utility companiesGlobal OmniumAs early as 15 years ago, it began digitally upgrading its water operations by introducing sensors, data mining, and analytics technologies—aiming to manage Valencia and its surrounding metropolitan area more efficiently.Water supply network, collaborating with multiple municipal authorities,Ensuring residents' stable water supply needs


This digital leap has given rise to Idrica.Founded in 2020.After more than a decade of development, the platform has achieved high interoperability and continues to undergo iterative upgrades, ultimately evolving into what it is today.Xylem Vue— An integrated digital water management platform that leverages real-time data insights for intelligent water resource management.


For Global Omnium, Iderica is a transformative platform that empowers utility companies to tackle the complex challenges across the entire water cycle—enabling significant reductions in water losses, enhanced system performance, lower operational costs, and improved customer service quality.


By simulating real-time network operating conditions and conducting "hypothetical scenario" analyses, thisThe utility company willRevenue-neutral water usage decreased by 30%, and energy consumption during the water treatment process was reduced by 15%.Operations and MaintenanceCosts were reduced by 20%, while customer satisfaction improved by 60%.


But Valencia’s innovation engine didn’t stop there. Global Omnium also established [something] in 2019.GOHub Ventures has since been investing in high-tech startups.Over 90 million euros. By integrating these startups' solutions into its own operational framework, Global Omnium has established a robust innovation feedback loop, enabling not only the scalable expansion of innovation but also enhancing internal operational efficiency and boosting investment returns. This model has become a replicable example of public-private collaboration, driven jointly by operational needs and entrepreneurial spirit.


2. Nationally Driven Innovation


In contrast, Singapore highlights the unique advantages of being a state-driven leader in water innovation. Faced with severe water scarcity and national security challenges, Singapore designated water resources as a strategic national priority decades ago. Today, SingaporeThe Public Utilities Bureau hasGrowing into a global leader, it integrates forward-thinking policies, cutting-edge technology, and international collaboration.


The Singapore model is deeply rooted in scientific and systematic thinking. The Public Utilities Board andNational University of SingaporeAndNanyang Technological University and other academic institutions are collaborating closely in research, development, and innovation applications. This partnership is being strengthened through collaboration with Keppel.Sembcorp Industries) andHyfluxOnce the company establishes a robust public-private partnership, Singapore has developedKeppel Marina East Desalination Plant (KMEDP)And the Changi New Water PlantChangi NEWater Plant)These landmark projects have now become the core infrastructure ensuring Singapore's water resilience.


The Public Utilities Bureau is also committed to fostering a thriving innovation ecosystem by means ofLiving LabSupported locally through funding programs such as the Open Testing Platform"Aquapreneurs". ByWateroamFor example, this startup provides clean and safe water solutions to communities in need and has already achieved international expansion—with support from the public sector. Importantly,Public Utilities BureauAlso investing in public awareness and brand building,By leveraging education and awareness campaigns, "water" can be reimagined as a national asset and a frontier of innovation—something that remains largely absent in most global water governance models.


Beyond urban boundaries


Cities are highly dynamic platforms, and many "water innovators" have actually launched their journey of creativity right in urban environments. By comparing the practices of Valencia and Singapore, we can distill the following key lessons.


  • MeLeadership within the business unit can unlock innovative potential.This is particularly effective when it comes to integrating investment, entrepreneurial spirit, and operational synergy. When companies invest in innovation while simultaneously enhancing their own performance, they can create a self-sustaining virtuous cycle—benefiting themselves while also driving the growth of the entire ecosystem.

  • Strong public-private partnerships are accelerating the transformation.Collaboration can come from any party, but mutual trust is the key. Strategic, long-term public-private partnerships provide a stable environment for innovation to take root, while also helping startups mitigate early-stage scaling risks and fostering their ability to scale up operations effectively. Governments can offer supportive policy frameworks, while the private sector brings its technological expertise and operational efficiency to the table.

  • Academic collaboration and flexible procurement mechanisms enhance the adoption rate of new technologies.This is especially critical for startups and early-stage technologies. When academia and government adopt open procurement mechanisms, they can effectively bridge the "valley of death"—the critical gap between lab innovations and market readiness—creating a seamless pathway from research and development to real-world implementation, while also fostering local talent development and strengthening technological capabilities.

  • Ecosystems require core institutions.These types of organizations are often forward-thinking public utilities or pioneering government agencies, equipped with the ability to drive systemic change and bring together stakeholders from all sectors. They serve as "facilitators" and "legitimacy advocates" within the ecosystem, attracting new players and investments while fostering ongoing innovation.

Global call for hybrid action


Relying solely on privatization doesn’t seem to be enough to address the challenges and difficulties facing the water sector, while a fully public model also falls short. The experiences of cities like Valencia and Singapore show that success lies not in taking sides, but in developing a hybrid approach that seamlessly integrates public oversight with private-sector innovation, financing, and operational expertise.


Hybrid financing, cross-sector collaboration, and a robust core institution are essential to collectively drive the scalable growth of innovation. When governments, utilities, private enterprises, startups, academia, and nonprofit organizations join forces, water resources will no longer be just a basic service—but rather a shared opportunity for development.


Action is urgently needed. Cities are not only at the forefront of water resource challenges—they are also leading the way toward transformation.








The above content solely represents the author's personal views.This article is translated from the World Economic Forum's Agenda blog; the Chinese version is for reference purposes only.Feel free to share this in your WeChat Moments; please leave a comment at the end of the article or on our official account if you’d like to republish.

Editor: Wan Ruxin

The World Economic Forum is an independent and neutral platform dedicated to bringing together diverse perspectives to discuss critical global, regional, and industry-specific issues.

Follow us on Weibo, WeChat Video Accounts, Douyin, and Xiaohongshu!

"World Economic Forum"




Share this article