Water and sewage sector is currently facing many challenges arising from the implementation of the circular economy (CE) model, which is the European political priority. Water and sewage sector is an important element of building CE as wastes such as sewage and sewage sludge are valuable sources of selected raw materials (e.g. Phosphorus) and energy. To measure the progress of the transformation towards CE, in 2018 the European Commission (EC) proposed a set of 10 CE indicators, however, there is limited relationship with the water and wastewater management. Therefore, the project aims to develop a monitoring framework that takes into account comprehensive indicators for CE, on the basis of which it will be possible to determine the level of transformation towards CE in the water and sewage sector.