How compatible are the reform of New Public Management (NPM) reforms and the creation of public values in practice? This issue is addressed in the light of the reforms of two public water utilities. Building on Moore’s (1995) strategic triangle, we have analysed the process of value creation associated with measures inspired by NPM. These reforms were first intended to secure financial resources. Certain public values were subsequently created, either under the influence of a leader, or through formalized NPM management tools. Under certain conditions, the implemen- tation of an NPM reform thus proves compatible with the introduction of processes that sustain public values. However, an undemocratic context necessarily limits these processes.