Water is precious natural resource for sustaining life and environment. Effective and sustainable management of water resources is vital for ensuring sustainable development. In view of the vital importance of water for human and animal life, for maintaining ecological balance and for economic and developmental activities of all kinds, and considering its increasing scarcity, the planning and management of water resource and its optimal, economical and equitable use has become a matter of the utmost urgency. Management of water resources in India is of paramount importance to sustain one billion plus population. Water management is a composite area with linkage to various sectors of Indian economy including the agricultural, industrial, domestic and household, power, environment, fisheries and transportation sector. The water resources management practices should be based on increasing the water supply and managing the water demand under the stressed water availability conditions. For maintaining the quality of freshwater, water quality management strategies are required to be evolved and implemented. Decision support systems are required to be developed for planning and management of the water resources project. There is interplay of various factors that govern access and utilization of water resources and in light of the increasing demand for water it becomes important to look for holistic and people-centered approaches for water management. Clearly, drinking water is too fundamental and serious an issue to be left to one institution alone. It needs the combined initiative and action of all, if at all we are serious in socioeconomic development. Safe drinking water can be assured, provided we set our mind to address it. The present article deals with the review of various options for sustainable water resource management in India.