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ABSTRACT Water data are evolving rapidly, driven by the expansion of diverse data platforms and the implementation of new policy frameworks. Despite advancements, the utilization of water data by water users remains uncertain. We surveyed 173 water permit holders across New York State to understand what water data are collected and for what purpose across geography, sector, and withdrawal volume. This study reveals that water data primarily serve regulatory purposes and play little role in permittees' operational, sustainability, or risk management decisions. To unlock the full potential of water data for users, we recommend educational initiatives such as training programs for data‐driven assessments, alongside technological advancements like developing web data portals that support risk and impact assessments. These recommendations aim to foster collaboration for navigating the complexities of stressors and achieving a more informed and adaptable approach to water usage.