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Purpose

The purpose of this study is to describe and explain the relative water scarcity condition as one of the main problems encountered in Indonesia. It is caused by fierce competition between water users, water over consumption and high water price. The water conflict and increasing phenomena of relative water scarcity result in unequal access to water between the rich and the poor. This research is intended to contribute to a balanced water governance system that secures equal and fair access to water resources for all users.

Design/methodology/approach

A mixed method approach was used involving interviews with the owners of the established bottled water companies, the community leaders, guard for sluice gate, local NGOs and several government agencies.

Findings

Research results indicate that water policies and implementation are lacking coherency. It is also shown that the complex government structure with responsibilities divided over multiple agencies is responsible for this. The circular economy for water governance system used to find alternative solutions for reducing social conflicts so that the water will be made available to those who have no water access.

Research limitations/implications

This research used only one location with a representative number of interviewees; hence, the findings are not possibly generalizable.

Originality/value

The combination of water legal framework and circular economy concept was used to reduce water scarcity

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