Systems Thinking in Water Neutrality Governance: Moving from system failures to resilient urban water systems

Neutrality-oriented environmental policies shift from a static perspective of environmental policy to a dynamic view that considers counterbalances, offsets, and gains, requiring governance and institutions to embrace cross-system complexities and interactions. In the water sector, the concept of water neutrality (WN) proposes systemic design options that can enhance the resilience and neutrality of water systems facing climate change stresses, shocks and uncertainties. This research explores how systemic design solutions can be integrated into decision-making processes within WN governance, taking into account the institutional challenges and cross-sectoral interactions that characterize dynamic water systems. Through a case study of WN in Manchester, UK, we develop a Causal Loop Diagram (CLD) and show feedback mechanisms of WN governance, drawing from participatory system dynamics, a systems thinking method. The CLD maps out institutional pathways that cross link governance and hydrological system. We share insights into three fundamental dynamics of WN governance observed in the institutional pathways: temporal (timescales of climate impact and management decisions), boundary (hydrological and administrative alignment), and feedback dynamics (structure of how hydrological and governance systems interconnect). We further explore how participatory systems thinking support a move towards neutral and resilient water system and integration of systemic options. • Water neutrality (WN) means systems counteract environmental impacts. • Participatory system dynamics mapped causal loop diagrams of WN governance. • Reactive loops connect systemic design options to governance institutions. • Aligning time, boundaries and feedback dynamics enables integrated decisions.