This article analyses the role of inter-municipal cooperation (IMC) as a governance model in promoting water circular economy (WCE) and water reuse practices. Despite the potential benefits offered by IMC, little is known about how IMC could contribute to fostering WCE adoption. The article develops and uses a framework to assess the involvement of IMC in advancing WCE strategies, addressing three key dimensions: governance robustness, IMC engagement in WCE, and territorial fit. It uses Portugal as a case study within the South European Union, where water scarcity and interest in IMC approaches are growing. Considering the emphasis on collaboration in legal and legislative frameworks, the results show the constrained role of inter-municipal communities (IMCs) in promoting the WCE through water reuse in Portugal. In addition, the limited integration of water reuse into territorial strategies highlights the lack of integration of water management and spatial planning. Moreover, the robustness of governance is hindered by a lack of funding, inadequate infrastructure, spatial barriers, a lack of experts or knowledge, and a deficiency in common goals or diversity of interests. Further research is essential to address territorial fit and spatial considerations critical to WCE adoption.

  • The transition towards a water circular economy (WCE) in the sense of water reuse requires institutional collaboration and territorial alignment.

  • Inter-municipal cooperation could play a pivotal role in promoting WCE and influencing water scarcity conditions.

  • Inter-municipal communities have limited involvement in promoting WCE in Portugal, despite the urgency underscored by the water scarcity issue.

This is an Open Access article distributed under the terms of the Creative Commons Attribution Licence (CC BY 4.0), which permits copying, adaptation and redistribution, provided the original work is properly cited (http://creativecommons.org/licenses/by/4.0/).

Supplementary data