Few scientific publications discuss the vision of the water-smart society. Our paper addresses this gap, outlining key principles of urban water–smartness and translating them into five strategic objectives to support decision-making at the local government level. Based on recent literature and dialogue with six European water Living Labs, we argue that the water-smart society must highlight societal well-being and co-development across sectors. Furthermore, we emphasize the need for a long-term perspective, conserving nature, and maximising ecosystem services, while anticipating change. Finally, we discuss how a more grounded conceptualisation of the water-smart society can guide utilities and urban policy design.