The urban water cycle is an essential component of cities but remains energy-intensive, accounting for a significant part of national electricity consumption and the operating costs of water utilities. This challenge is particularly acute in low-income communities, which often face resource inefficiencies, socio-economic inequality and environmental vulnerability. Nature-based Solutions (NbS) offers an opportunity to improve water and energy efficiency while promoting climate resilience and social equity. NbS can provide multifaceted benefits, including reducing energy consumption in water systems, mitigating climate risks and creating more liveable and inclusive urban spaces. This study examines the RECAREI Social Housing Complex in Matosinhos, Portugal, as a case study to assess the potential for improving water and energy efficiency through strategies implemented at the urban community level. Implementing water reuse systems, for example, in line with water efficiency strategies, the study estimates a 39–53% reduction in potable water consumption and a 16–23% reduction in wastewater production. These measures also result in significant energy savings, with a total reduction of 8313 kWh/year in urban water supply (WSS) and wastewater management (WWM) systems, equivalent to 1255 t of CO₂/year. In addition, the use of NbS can increase these benefits by up to 30%, while promoting urban greening, community well-being and social cohesion. The findings highlight the potential of NbS to transform social neighbourhoods into resilient, sustainable and equitable communities. By integrating blue-green infrastructure (BGI), NbS can help decarbonise urban systems and improve living conditions in low-income communities, aligned with national and international climate action and social inclusion objectives.