Shandong's per capita water resources are less than one-sixth of the national average. Severe resource constraints have spurred the rapid rise of the water conservation industry, which is now valued at 50 billion yuan across the province. Addressing water conservation needs across all scenarios, Shandong has established a "2+2+N" industrial layout featuring the dual cores of Jinan and Qingdao, and the Yellow River and coastal regions as two wings, backed by multi-point support. This has yielded technological advantages in areas such as seawater desalination, smart metering, and smart irrigation. Lubei OriginWater has achieved the comprehensive zero-waste recycling of seawater, while LETRUE enables precise measurement with ultrasonic water meters from its independent R&D. Multiple technologies have been selected for the national-level promotion catalog. The province has established 4 provincial-level water conservation technology innovation centers, and 119 enterprises have obtained water-saving product certifications. Faced with challenges such as fragmented, small, and weak enterprises, as well as the misalignment between water prices and costs, Shandong has introduced industrial plans, promoted "water-saving loans," and built an industrial brain. These initiatives aim to shift water conservation from a policy-driven approach to a market-driven one, overcoming water resource bottlenecks through industrial innovation and empowering green, low-carbon, high-quality development.