Abstract: The water industry is an important sector that involves people's livelihood and the environment. With the advent of the big data era, water enterprises are gradually establishing information systems and accumulating a large amount of data resources. Firstly, this paper elaborates on the concept and characteristics of the water industry data economy. Secondly, it explores the value and application scenarios of the water industry data economy, including improving efficiency, optimizing decision-making, innovating services, reducing risks, and promoting sustainable development. Next, it analyzes the challenges faced by the water industry data economy, such as data quality, data security, data sharing, and data innovation, and proposes corresponding strategies. Finally, it discusses the development prospects of the water industry data economy, including technological advancements, policy support, innovative applications, industry collaboration, social awareness and acceptance. The research on the water industry data economy indicates that water data is an important strategic resource with great potential and value. With the continuous progress of technology and the increasing societal demands, the water industry data economy will bring more opportunities and innovations, driving the water industry towards intelligence, greenness, and sustainable development, providing valuable insights and guidance for water companies and relevant government departments.