This study aimed to develop a conceptual model of an enhanced organizational culture grounded in administrative health at Ardabil Regional Water Company, employing a qualitative approach based on grounded theory. Data were collected through in-depth interviews with 19 academic and executive experts of the company using purposive and snowball sampling until theoretical saturation was achieved. Data analysis was conducted through open, axial, and selective coding, resulting in the extraction of 432 primary and secondary codes, 42 concepts, 16 categories, and 6 principal factors. The findings identified the core phenomenon as an organizational culture oriented toward administrative health, founded upon strategic, innovative and talent-nurturing, ethical and justice-oriented, and accountable cultural dimensions. The causal conditions of this phenomenon comprised both intra-organizational and extra-organizational factors, while intervening conditions included managerial, behavioral–value-based, and structural anomalies. Contextual conditions such as constructive positive behaviors, social responsibility, and a learning-oriented culture were also found to play a significant role in shaping the model. The strategies for institutionalizing a health-oriented culture encompassed structural and value-based approaches, leading to outcomes such as sustainable organizational performance and the enhancement of human and social capital. Accordingly, the implementation of an administrative health–based organizational culture can contribute to improved organizational effectiveness, strengthened organizational trust, and sustained performance.