As the largest economy in southeast Asia, Indonesia has seen significant industrial and infrastructure development during the last five years, impacting the increased water supply demand. Based on data, the industry total water usage has an annual growth of 10% through 2025. However, the average business growth of water treatment companies for the previous five years is below five percent, which could be very low for some companies. Thus, industrial water treatment companies must look at their competitive advantage to distinguish them from the competition. This research followed the influence of customer trust (CT) as moderating variable that affects the relation of business model innovation (BMI) to competitive advantage (CA). This thesis employed the SPSS v25 and SmartPLS 4 software to generate the structural model and analyze the 65-questionnaire. Data was collected from the firm's employees who worked at C-level and one layer under C-level at industrial water treatment companies, with growth below five percent done against ten industrial water treatment companies, their customer (end-user) who worked at C-level and one layer under C-level. The sampling period is form July to Aug 2022. The result showed that customer trust (CT) has a positive effect on moderating the relationship between business model innovation (BMI)and competitive advantage (CA). The finding contributes to the literature with the moderator variable of customer trust (CT). The practical implication of the study is to provide industrial water treatment companies' management with some guidance on the appropriate response strategy, which would increase their competitive advantage.