Global climate change increases the uncertainty about water, its availability, and quality, as well as the resilience of urban water infrastructure. Therefore, the water sector is under transformation to react to those future challenges and to move toward more sustainable and resilient water management. Simultaneously big data analytics, artificial intelligence, and other new digital technologies are introduced to the water sector, implementing new functionalities for water management. At the juncture of these developments, a discourse around digital water has emerged around statements such as “the future of water is digital” (Sarni, 2020). This discourse is characterized by two distinct lines of argument. On the one hand, a prevailing technological solutionism (Morozov, 2013) emerges. On the other hand, sociotechnical imaginaries (Jasanoff, 2015) of the future constitute digital tools of water management as a new technical and economic pathway within the water sector, resulting in positive and optimistic future outlooks for the water sector. Both arguments, along with their spatial implications, were critically examined through the Strategic Pipeline Alliance (SPA) in the East of England. With the adoption of digital technologies in the water sector, their role in spatial production processes increases, for instance, by creating new regions of water exchange and management. In the case of the SPA, new physical water infrastructures are established as well as new digital spaces, resulting in distinct spatial reconfigurations within the water sector.