In many Indian cities, problem of water scarcity is acute and most of the challenges of water supply and environmental sustainability are still unanswered. The condition is even worse for the informal settlements and slums in these urban areas where basic water and sanitation infrastructure are altogether missing. In order to meet these growing challenges, the present scenario of the public water supply system needs overall reforms, targeted towards improving the institutional, administrative, managerial and financial aspects related to urban water management. The main purpose of this research article is to highlight the institutional change needs for sustainable urban water management in India. The institutional change will involve: (i) one or combination of organizational change measures comprising decentralization, creation of autonomous utilities, private sector participation and community-based management; (ii) directive reforms; and (iii) human resource development. The finer aspects will depend upon the physical and socio-economic environment, political situation and administrative set-up that exist in the urban area. The institutional changes will be more important for small urban towns where public utilities are given little attention. All these together can equip Indian cities better for averting risk in the face of rapid urbanization, climate change and water scarcity.
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