Incentive based regulation is an innovative and uniquely South African response to challenges in the water sector. The Blue Drop Certification programme seeks to induce changes in behaviour of individuals and institutions to facilitate continuous improvement and adoption of best practice management of the delivery and distribution networks from abstraction to the water treatment works to the points of use. Consequently, progressive improvement and excellent performance is recognised and rewarded. The 2023 Blue Drop report provides comparative analyses and diagnostics to assist Water Services Institutions (WSIs) to focus on specific areas for improvement and restoring functionality of their water supply systems.