With rising spatial and temporal scarcity of water, municipalities are confronted with the challenge of identifying innovative yet cost-effective solutions to meet rising demands of urban, industrial, and agricultural communities. Structured as a practitioner’s guide and supported by the 2030 Water Resources Group, this publication aims to highlight the challenges and opportunities for stakeholders to develop circular economy solutions, targeting optimal utilization of scarce water resources. It provides a framework for urban local bodies, businesses, and communities to identify and optimize the nexus between water, energy, and agriculture. The document builds upon global case studies to distil lessons relevant to the Indian context, including possible options for energy and resource recovery and wastewater reuse, among others. Drawing upon factors such as institutional and regulatory contexts, business cases, scale, participatory approaches, finance, and technologies, it provides a decision-making framework for prioritization of resource-efficient solutions.