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Data-as-a-Service (DaaS) can help facilitate the successful adoption of innovative digital solutions by water utilities. However, little is known about the processes used to adopt this model, including the initial challenges and required utility maturity factors. This study engaged diverse stakeholders through a service design approach to support water utilities in evaluating their suitability to adopt DaaS. The findings demonstrate an innovative method by which both DaaS providers and utilities can better analyze their needs and strategic interests, and those of the people they serve. In so doing, they can co-create mutual trust needed to tackle complex water policy challenges. • Data-as-a-Service adoption is limited by procurement processes and water utility culture. • A utility decision support tool should be tailored, interactive, and prove the business case. • The service design method can effectively engage diverse, water industry stakeholders. [ABSTRACT FROM AUTHOR]