Water-supply and distribution companies;WSC are characterized through a high need of energy (Pieper, 2008). The challenges of a sustainable development and the climate change as well as the necessity to reduce climate relevant emissions and develop adaptation strategies are aimed at a drastic reduction of energy costs and the development of intelligent sustainability-oriented infrastructure and management systems (Kemfert and Müller, 2007; Palme, 2009; Pinske and Kolk, 2010). To achieve these goals local strategic planning processes and sustainability transitions in the infrastructure sector are needed (Peterson et al., 2009; Truffer et al., 2010). In the energy sector, the climate change will influence the transportation ways and risks, change the availability of resources and raw material supply as well as restructure the value chains, cooperation and specific division of labor (Niehues, 2001; Pieper, 2008). In order to be able to meet the requirements of a sustainable development and look after their social responsibility WSC should develop strategic options because of the coupling from energy demand and a high quality of water treatment and wastewater disposal (Arnold, 2007). In addition, the interconnections between the two sectors - known as the energy-water-nexus - should get more attention (Hussey and Pittock, 2012). 

In the last decades the WSC were deeply under economical pressure because of the structural debate with regard to their service as fundamental part of the services for the public (e.g. by deregulation, liberalization, and privatization; Kluge et al., 2003; Manso et al., 2005; Rothenberger, 2003). In this connection it could be seen that not all aims of a sustainable water economy could be achieved like resource efficiency, water quality, responsibility issues, and transparent pricing policy for all customers (Zschille et al., 2009). Especially the necessity of using innovative, system-oriented approaches of the resource economy like material flow management, eco-accounting, sustainable supply management was taken up insufficiently (Pieper, 2008). Paradigm change from cost efficiency to eco-efficiency is imperative. Here, the WSC can play an active role in structural policy and make a decisive contribution to forward-looking, sustainable industrial water ecology.

In this connection it is necessary to think about possible transformation paths of the existing water systems, also in the municipalities. Taking the perspective of transformation, it makes some starting points and instruments to manage disruptions and discontinuities obviously. It can be also seen as ‘thinking in options and possibilities’ and further steps and activities in order to actively manage regime alternatives and transformation paths. A subtly diversified debate between the actors involved (municipalities, companies, networks, etc.) is necessary to be able to demonstrate conclusions and consequences of plans and implementations. Subtly diversified systems gain importance in this context (Donner, 2005; Hiessl, 2005). These systems can only be successfully when existing systems are adopted and rearranged gradually form today (Koziol et al., 2006). At the same time it is necessary to ensure the specific functions, to fulfill the conditions of corporate management and to shape the transformation process socially and environmentally. Innovative service, distribution and disposal strategies have to be developed and implemented in decreasing as well as in rapidly growing regions (Bieker, 2009). Municipalities and the WSC are equally challenged. There are a lot of indications of existing systems based on centralized network structures with inadequate sustainability (de Graf and van de Ven, 2005; Kärmann, 2001; Palme et al., 2005; Scheele, 2008). Obviously are the high energy and resource consumption, path dependency as well as limited adaptability of the existing systems.