Innovations in water chain are discussed based on experiences in the Netherlands. The available and new technological options, as well as their dissemination in the Netherlands, are presented for the prevailing system with add-on technologies (elongation), and for the emerging separation system with technologies at the source. Numerous new options are available for both systems but these options are rarely used. The low use is explained using economic theories and with practical examples from the Netherlands. In order to foster innovations, the mainstream, evolutionary, and behavioral theories pinpoint respectively the pricing of common goods, broad support of concerted action, and support for innovators’ entry. These actions may all be needed. Experiences with a stakeholder cluster in water management suggest that markets for high value water use invoke innovations and low-cost technology adaptations. The systematic development of services that foster high value water-based activities is recommended.