To enhance the sustainability of water supply systems, the development of new technologies for micro scale hydropower remains an active field of research. The present paper deals with the implementation of a new micro-hydroelectric system for drinking water facilities, targeting a gross capacity between 5 kW and 25 kW. A counter-rotating microturbine forms the core element of the energy recovery system. The modular in-line technology is supposed to require low capital expenditure, targeting profitability within 10 years. One stage of the DuoTurbo microturbine is composed of two axial counter-rotating runners, each one featured with a wet permanent magnet rim generator with independent speed regulation. This compact mechanical design facilitates the integration into existing drinking water installations. A first DuoTurbo product prototype is developed by means of a Computational Fluid Dynamics based hydraulic design along with laboratory tests to assess system efficiency and characteristics. The agreements between simulated and measured hydraulic characteristics with absolute errors widely below 5% validate the design approach to a large extent. The developed product prototype provides a maximum electrical power of 6.5 kW at a maximum hydraulic head of 75 m, reaching a hydroelectric peak efficiency of 59%. In 2019, a DuoTurbo pilot was commissioned at a drinking water facility to assess its long-term behavior and thus, to validate advanced technology readiness levels. To the best of the authors knowledge, it is the first implementation of a counter-rotating microturbine with independent runner speed regulation and wet rim generators in a real-world drinking water facility. A complete year of operation is monitored without showing significant drifts of efficiency and vibration. The demonstration of the system in operational environment at pre-commercial state is validated that can be attributed to a technology readiness level of 7. The overall results of this study are promising regarding further industrialization steps and potential broad-scale applicability of the DuoTurbo microturbine in the drinking water industry.