Capturing Value from Stormwater in a Circular Water Economy

Communities are rethinking how they manage stormwater by REDUCING waste, RECOVERING valuable resources, and REGENERATING natural systems by transforming the way water moves through the environment. This circular approach frames stormwater management as an opportunity to connect water systems, improve resilience, and generate community benefits for a more resilient future. One of the Water Environment Federation’s (WEF) strategic goals is to collaborate with organizations such as the National Municipal Stormwater Alliance (NMSA) to lead the water sector’s transformation into a Circular Water Economy.

This is a management process that reframes water as a renewable resource rather than a linear take-use-dispose process, focusing on reducing waste, recovering nutrients and energy, and regenerating nature within the water cycle. This transformation has significant potential, and a national shift toward circular water practices can create up to $47 billion in direct economic value for utilities and municipalities. Much of this value comes from regenerative practices that use stormwater to support wetlands for flood mitigation or to recharge groundwater.

This report shows that, by closing the loop on stormwater, communities can move beyond merely managing risk to actively creating value, ensuring that water systems are resilient, equitable, and fit for the challenges of the decades ahead.