Circular economy has emerged as a response to the unsustainable linear model of “take, make, consume, and waste”. Yet so far, the water sector has not been systematically included in high-level circular economy strategy discussions and has not fully reaped the potential benefits. Circular economy principles offer an opportunity to recognize and capture the full value of water - as a service, an input to processes, a source of energy, a carrier of materials - and to make the sector more sustainable financially and environmentally, while enhancing resilience to climate change and mitigating emissions. This report presents the Water in Circular Economy and Resilience (WICER) Framework to establish a common understanding of circular economy and resilience principles in the water sector. The Framework grew out of a literature review and was informed by lessons learned from global case studies and from the knowledge of the World Bank. The report aims to clarify how circular economy principles can be applied in the water sector, and to guide practitioners, especially from governments in low- and middle-income countries, with a clear long-term plan to become circular and resilient. The framework describes the nine key actions needed to achieve three main outcomes: (1) deliver resilient and inclusive water services; (2) design out waste and pollution; and (3) preserve and regenerate natural systems. The novelty of the proposed framework is that it goes beyond reusing and recovering resources from wastewater, and it presents a more holistic approach for water and sanitation services, considering a water basin approach and including resiliency principles, climate mitigation strategies and inclusiveness – all of which are particularly relevant in the context of developing countries.