jats:pCurrent and future smart cities are moving towards the zero-net energy use concept. To this end, the built environment should also be designed for efficient energy use and play a significant role in the production of such energy. At present, this is achieved by focusing on energy demand in buildings and to the renewable trade-off related to smart power grids. However, urban water distribution systems constantly carry an excess of hydraulic energy that can potentially be recovered to produce electricity. This paper presents a comprehensive review of current strategies for energy production by reviewing the state-of-the-art of smart water systems. New technologies (such as cyber-physical systems, digital twins, blockchain) and new methodologies (network dynamics, geometric deep learning) associated with digital water are also discussed. The paper then focuses on modelling the installation of both micro-turbines and pumps as turbines, instead of/together with pressure reduction valves, to further demonstrate the energy-recovery methods which will enable water network partitioning into district metered areas. The associated benefits on leakage control, as a source of energy, and for contributing to overall network resilience are also highlighted. The paper concludes by presenting future research directions. Notably, digital water is proposed as the main research and operational direction for current and future Water Distribution Systems (WDS) and as a holistic, data-centred framework for the operation and management of water networks.</jats:p>