Globally, the water management in the cities face challenges of resource availability, distribution and maintaining quality. The western Thar regions of India experiences the frequent extreme weather events such as droughts and hot days. Ajmer-the third largest city of Rajasthan located in this region is progressing towards unsustainable future of water owing to dependency on the distant single source i.e., Bisalpur dam for its needs. The increasing population; and higher water demand from economic and quality of life aspirations is pushing it to a perilous stage of water including high-water stress and shortages with compounding effect of erratic rainfall and droughts. The framework promulgated useful for local institutions like Ajmer Nagar Nigam and Ajmer Development Authority (ADA), India to achieve effective urban water management. The paper analyses the existing water situation and identifies water issues to propose water management strategies by building the likely future scenario. The most likely scenarios which include the future events of droughts; better or lower water allocation; smart implementation of national and state projects; wastewater management; and recycling were selected for analysis. The overall assessment could guide the local bodies and intuitions in identifying the cost-effective and adaptable strategies for water resource management, and preparing them for water-scarcity situations in advance thereby infusing the long-term resilience.