Data-driven operation in the water sector (Industrie 4.0 for water) is gradually taking hold. All parties in the sector are now active in vertical integration along the data value chain (sensors, communication, connectivity, cloud storage, analysis). At the same time, sensors and algorithms are still being actively developed, with an emphasis on more specific applications within the water sector. The business case for implementing these systems is hard to justify because water applications only address two out of the six potential benefits of Industrie 4.0: cost reduction and efficiency improvements. This report will address the application of IoT and Industrie 4.0 to the water sector by answering three key questions: 1) What is the definition of “optimize”? 2) What data is available, what data is required, and how does one bridge the gap? 3) What are the available actions?