What can we learn from cities about water innovation?

As global attention on water grows, cities are becoming critical arenas for innovation.

Cities focus on the challenges — such as scarcity, floods and ageing infrastructure – and the opportunities to test and scale emerging solutions. Unlike large-scale national strategies, cities can act fast, engage communities directly and serve as living labs for new technologies.

Two cities – Valencia and Singapore – have taken different but equally impactful paths towards water innovation. One is driven by private-sector leadership and entrepreneurial spirit, the other by strong public institutions and national strategy. Their success highlights how both governance models can lead to transformative change when rooted in long-term vision and collaboration.

These two examples were discussed during World Water Day 2025 events in London, convened by the World Economic Forum. One event marked the launch of Water Futures: Mobilizing Multi-Stakeholder Action for Resilience, a report shaped by industry leaders, including Xylem, through the Water Futures Community. Another presented Water-BOOST, a systems toolkit developed through the Hoffmann Fellowship in Water Innovation in collaboration with Imperial College London.

So, what can we learn from these two very different models and how might their lessons help other cities navigate the future of water?

Valencia, Spain, has long faced increased water stress caused by volatile weather patterns – more frequent and severe droughts and floods – and ageing infrastructure. In October 2024, the city experienced one of its most devastating floods in recent memory. Yet, resilience is part of its DNA. In the 1960s, Valencia made history by diverting its riverbed away from the urban core, transforming the former channel into a green cultural corridor that defines the city today.

More recently, the city has embraced a digital transformation journey. Global Omnium, a private utility, began digitizing its water operations 15 years ago, using sensors, data mining and analysis. The goal was to more efficiently operate and manage the complex water network in Valencia and the surrounding metropolitan area, partnering with multiple municipalities and ensuring a reliable water supply to residents.

This digital leap led to the creation of Idrica in 2020. Over a decade’s development work resulted in a fully interoperable platform that has continued to evolve, culminating in what is today Xylem Vue, an integrated digital water management platform that uses realtime insights to manage water.

For Global Omnium, the platform has been transformative, helping the utility to navigate complexities across the entire water cycle, reducing water loss, improving performance, lowering costs and improving customer service.

By simulating real-time network behaviour and running what-if scenarios, the utility has reduced non-revenue water by 30%, energy consumption during the water treatment process by 15%, and OPEX maintenance costs by 20% while achieving a 60% increase in customer satisfaction.

But Valencia’s innovation engine does not stop there. Global Omnium also launched GOHub Ventures in 2019, investing over €90 million in high-tech start-ups since then. By integrating start-up solutions into its operations, Global Omnium has created a powerful feedback loop, scaling innovation while boosting internal efficiency and returns. The result is a replicable public-private partnership model driven by operational need and entrepreneurial vision.

In contrast, Singapore highlights the merits of a state-led approach to water innovation. Faced with acute water scarcity and national security concerns, the country positioned water as a strategic priority decades ago. Today, its Public Utilities Board is a global leader, combining policy foresight, cutting-edge technology and international collaboration.

Singapore’s model is deeply rooted in science and systems thinking. PUB works closely with academic institutions such as the National University of Singapore and Nanyang Technical University on research and development and applied innovation. Through robust public-private partnerships with companies such as Keppel, Sembcorp Industries and Hyflux, the city-state has developed landmark projects such as the Keppel Marina East Desalination Plant (KMEDP) and Changi NEWater Plant, both critical now to the city’s water resilience.

PUB also fosters a thriving innovation ecosystem, supporting local “aquapreneurs” through funding schemes such as the Living Lab and open testbeds. Take Wateroam, a start-up providing clean and safe water solutions to communities in need, now scaling internationally thanks to public sector support. Importantly, PUB also invests in public awareness and branding, which helps to reframe water as a national asset and innovation frontier – something often lacking in most global water models.

Cities are powerful platforms for action, and many aquapreneurs are beginning their innovation journeys in urban contexts. Comparing Valencia and Singapore reveals key insights.

Privatization alone does not seem to have solved the sector’s challenges, nor have fully public models. Cities such as Valencia and Singapore show that success lies not in choosing sides but in building hybrid models that blend public oversight with private innovation, financing and delivery.

Blended finance, cross-sector collaboration and strong anchor institutions all make innovation scale. When the right actors unite – governments, utilities, private sector, start-ups, academia and philanthropy – water becomes more than a service; it becomes a shared opportunity.

The time to act is now. Cities are not only on the frontlines of water challenges; they are leading the way forward.