Water scarcity poses the primary challenge for Morocco, with the potential for natural water resources already falling below the critical stress threshold of 1000 m3/inhabitant/year due to population expansion and climate change. Moreover, these resources are unevenly distributed throughout the different hydraulic basins. Thus, the circular economy (CE) offers a promising model for managing water resources sustainably, prioritizing the rethinking, reduction, reuse, recycling, and recovery of water. Furthermore, adopting a circular approach rather than the conventional linear system of ‘take-make-use-dispose’ can enable Morocco to address its increasing water demand better. This article aims to assess the extent to which Morocco adopts the CE for water management. To achieve this, we reviewed Morocco’s water management and regulations, the existing state of the water economy, and the obstacles and advantages of implementing a CEW (circular economy of water). Our evaluation suggests that while Morocco is among the leading countries in water management and has implemented various strategies for sustainable water development, several gaps remain that need to be addressed to achieve a fully closed loop.