Digital Twin (DT) technology has emerged as a promising solution for enhancing the management of the three water infrastructures (potable water, wastewater and stormwater). Its application ranges from asset monitoring and predictive maintenance to health management and decision support, promising a future of efficient and sustainable water management. In New Zealand, where ageing infrastructure and climate change present significant challenges, implementing DT on the three waters sector offers substantial benefits. This study comprehensively reviews DT applications in New Zealand’s three waters infrastructure by examining academic literature, industry insights, and government initiatives. The research analyses the architecture layers of DT system using Six-layered Architecture for Digital Twin (SLADT) framework and explores stakeholders’ perspectives on DT adoption in the sector. The findings reveal DT systems follow a hierarchical framework, with layers tailored to stakeholders’ needs. Since 2018, the New Zealand government has initiated several programs, including the National Digital Twin program, to promote DT technology. However, the progress has been hindered by shifting government priorities and a lack of datasharing among stakeholders. While some councils have implemented DT at various levels, the full-scale adoption of DT across the three waters system remains incomplete. The study identifies stakeholders’ reluctance to collaborate as a key challenge, which could be addressed through legislative reforms, policy changes, and increased government funding.