The existence of local values in administrative systems and public services has been widely recognized and practiced. Islamic values and institutions in the study of public administration are also increasingly gaining interest in scholarship, with both theoretical and empirical studies being conducted in several countries on the coexistence of Islamic values with public administration to strengthen public services. Pesantren, Islamic education institutions in Indonesia that have long played a role in various social services, have become a community driving force in the context of environmental activism, for example, for waste processing and sustainable use of water resources. This paper explores the role of pesantren in environmentally friendly waste and water management. Our findings reveal that Islamic values cultivated within pesantren effectively guide communities toward sustainable waste and water management. © 2025 Tallinn University of Technology. All rights reserved.