Water quality management is a critical concern impacting both “soft” and “hard” water sources in rural India, directly affecting population health, livelihoods, and the environment. This paper offers an extensive analysis of water quality issues in Pullinkunno village, Kerala, where chemical contamination (“hard” water problems) and the necessity for community-driven solutions to secure sustainable access to potable water (“soft” water challenges) present considerable threats to the community’s health. Employing a Human-Centred Design (HCD) and Participatory Rural Appraisal (PRA) methodology, we collaborated with local stakeholders to assess the social, economic, and environmental ramifications of water contamination. Principal findings reveal that elements such as agricultural runoff, chemical pollution, and inadequate water infrastructure have resulted in significant deterioration in water quality, impacting both domestic and agricultural requirements. The research highlights community empowerment and engagement in tackling “soft” water challenges, suggesting treatments including modular community-based water treatment facilities and rainfall harvesting systems. These solutions are designed to enable local citizens to engage actively in addressing and managing their water issues. The study emphasises the necessity of incorporating technical, social, and economic factors to enhance resilience in rural water management systems. These solutions seek to increase access to clean water, better the community’s overall life, and contribute to the United Nations Sustainable Development Goal (SDG-6) concerning Clean Water and Sanitation.