The water-cooled Pb-17Li blankets represent one of the blanket lines selected within the European Union for DEMO-relevant design and R&D activities. This paper gives a presentation of the reference conceptual design for water-cooled Pb-17Li DEMO blankets and an overview on the results of its performance assessments. Moreover, a critical discussion about the technical aspects requiring further improvements and/or modifications is performed taking into account the present status of the associated R&D. This concept appears to be a very promising candidate for a DEMO reactor breeding blanket.