“The healthy rivers underpin economies.” With this seed idea, the research is envisioned to integrate a conservatory approach for water-related ecosystem services in a holistic manner of urban development, capitalising on their synergies to achieve long-term water security and resilience, whilst creating fiscal capacity expansion and sustainable urban environments. Rivers contribute a higher amount of environmental, economic and social benefits. Despite carrying the potential of a strong importance, it often faces pressure and degradation due to increasing anthropogenic activities. This study assesses the integration of the Payment for Ecosystem Services (PES) framework with Ecosystem Services (ES) assessment to facilitate sustainable riverside management. The site area Godavari River in Nashik is assessed on four types of ecosystem services listed in Millennium Ecosystem Services (MEA). The study uses a multi-criteria evaluation approach to map and analyse ES along selected urban stretches of the river, using a matrix-based methodology. The initiative builds on the historic character of a river as a lifeline for human survival, which is particularly evident in the selected site of the “Godavari River Influenced Zone” in Nashik, Maharashtra. The findings are relevant for the formulation of development control regulations (DCRs) that take into account ecological thresholds, the institutional design of PES initiatives, and river-sensitive planning. The objective of this methodology is to direct Nashik toward a river-centric urban development paradigm that is consistent with the SDG objectives for water, climate, and biodiversity.