<p>Despite the presence of water supply infrastructure, there is high coping costs and significant disparities in access across planned and unplanned settlements. This research evaluates the effectiveness of Best Water Management Practices (BWMP) and Integrated Urban Water Management (IUWM) in mitigating the socioeconomic and infrastructural impacts of water scarcity in Delhi, India. Through a combination of field surveys, economic cost analysis, and policy benchmarking, the study quantifies the burden of inadequate water provisioning and highlights the limitations of current governance and delivery mechanisms. The findings demonstrate that BWMPs, encompassing leakage control, demand-side efficiency, decentralized storage, quality surveillance, and reuse strategies, when integrated with IUWM frameworks, yield measurable improvements in supply reliability, resource sustainability, and cost recovery. Drawing parallels with international best practices from Japan, Israel, and Singapore, the study recommends a policy shift toward regulatory enforcement, public–private participation, and adaptive infrastructure planning. These interventions are essential to closing the projected 744–1498 BCM water demand–supply gap by 2030 and achieving resilient, inclusive urban development.</p>