Smart regulation for water innovation – the case of decentralized rainwater technology

“Lead-markets”, “environmental innovations”, and “low-carbon technologies” are some of the modern buzz-words surrounding environmental regulation. But how can governments set the stage for industrial innovation, new and improved products, and the implementation of new, cleaner processes, products and services? The article explores this question with reference to sustainable water technologies, specifically the purchase of decentralized rainwater facilities. It is more ecologically sustainable to process rainwater locally than expanding drainage into the centralized system. However, the market for decentralized water technologies is still a niche one compared to centralized infrastructure. The article therefore evaluates regulative instruments in “smart” support of decentralized technologies.