Urban water systems are increasingly under strain due to the dual pressures of rapid urbanization and climate change, particularly in the Global South with weak institutional capacities and increasing water demand. Traditional centralized governance models are proving inadequate in the face of emerging environmental, technological, and socio-economic complexities. This chapter explores the evolving role of decentralized governance in urban water management, highlighting the shift from authoritative providers to adaptive coordination. Drawing on case studies from five cities: Cape Town, Riyadh, Medellín, Chennai, and Jakarta; this chapter investigates diverse governance approaches and opportunities to build more climate-resilient, equitable, and sustainable urban water systems, highlighting innovations such as demand-side management, smart infrastructure, civic-led restoration, and participatory accountability. The analysis reveals that effective water governance in the Global South must evolve beyond service provision to enable governments to act as facilitators, regulators, and coordinators. The findings emphasize the urgency for institutional reform, cross-sectoral collaboration, and inclusive decision-making in transforming water governance to meet twenty-first-century challenges. The chapter proposes a conceptual framework for water governance centered on multi-level governance, participatory planning, climate-risk integration, technological innovation, and equity. This transformative framework advocates for a bottom-up, integrated governance paradigm that bridges national aspirations with local realities to ensure water security in an era of global transformation. It can support the achievement of Sustainable Development Goals (SDG) 6 and SDG 11 by fostering resilient, inclusive, and sustainable urban water systems.