The water sector has been considered as the priority in implementing the Circular Economy (CE) in Kazakhstan, aiming to reduce anthropogenic pressure on the environment and promote efficient water resource use. Challenges have been rising significantly in the water sector in Kazakhstan, while tailor-made research on the CE in the water sector has not been addressed. This study assesses the water management system in different sectors of the economy of the Pavlodar region of Kazakhstan, focusing on (waste)water distribution networks, irrational water use, emissions, and associated water and energy losses. Interviews were conducted with stakeholders from local industries, governmental bodies, water supply utilities, and academia to understand their willingness to adopt the CE principles. Responses from the interview were examined using the SWOT (Strengths, Weaknesses, Opportunities, and Threats) and the Analytic Hierarchy Process (AHP) approaches. The existing water infrastructure is recognised as a prominent strength and a crucial factor for the prospects of CE implementation. The inadequate and outdated state of the water infrastructure, along with substantial water losses, are recognised as highly influential weaknesses in the industrial water management systems of the region, which were also acknowledged as the weakest aspects and obstacles towards the implementation of the CE principles in the water sector. High investment costs for water infrastructure modernisation and the projected increase in water consumption were considered major threats to the successful implementation of CE practices in the studied region.