It has been noted that there are numerous challenges affecting urban water management, such as population growth and climate change in recent years, as well as deteriorating infrastructure. The focus of this paper is the strategies, policy issues, and challenges of incorporating science and technology advancement in future urban water systems. Emerging technologies, including smart water grids, decentralized treatment systems, IoT, AI, ML-based real-time systems can transform the way for effective water resources management in cities in terms of efficiency, sustainability, and resilience. However, for these innovations to deliver on their full potential, enabling policies as the foundation provides the backbone. In the present policies, there is always a time when policies fail to catch up with technological developments, leading to compatibility issues of infrastructures, data protection, and inequalities in water access. The focus of this paper is on flexibility of regulations with the aim of encouraging innovation in products and services while taking into consideration the safety of consumers and effect on the environment. This opens up the debate for the participation of the public in decision making and presents recommendation like public-private partnerships, subsidies and tax incentives to support the growth and diffusion of new technologies. Responding to the policy and legal frameworks for sustainable water management, this paper calls for an overhaul of the various policies, legislation and institutional frameworks to incorporate science and efficiency for climate change mitigation. Lastly, it is important to state that there should be an optimistic vision for cities that will allow them to find ways of managing water resources sustainably in the future.