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We argue in this paper that Swedish urban areas have several urgent challenges when it comes to water governance and we propose seven principles for addressing them. Climate change and urban growth call for swift action to manage both water scarcity and flooding in an integrated way. This paper focuses on the municipal level for which we argue that there is a need for a more systematic approach. The seven principles require an engaged and knowledgeable political force at national, regional and municipal level. We call for governance at river basin level, better risk prevention in planning, adequate incentives to invest in nature-based solutions, adapted legislation, adapted organisation and strategic collaboration, increased citizen engagement, and knowledge support from research. We also mention some of the well-functioning and promising initiatives that already make a difference in today’s urban water governance and management.