The High Performance Light Water Reactor (HPLWR) is a Light Water Reactor (LWR) operating at supercritical pressure (25MPa). It belongs to the six reactors currently being investigated under the framework of the Generation IV International Forum. The most visible advantage of the HPLWR shall be the low construction costs in the order of1000€/kWe, because of size reduction of components and buildings compared to current LWR, and the low electricity production costs which are targeted at 3-4cents/kWh. In Europe, investigations on the HPLWR have been integrated into a joint research project, called High Performance Light Water Reactor Phase 2 (HPLWR Phase 2), which is co-funded by the European Commission. Within 42 months, ten partners from eight European countries working on critical scientific issues shall show the feasibility of the HPLWR concept. The final goal is to assess the future potential of this reactor in the electricity market.