The global challenge of water scarcity is compounded by the pervasive issue of water wastage caused by pipeline leaks in urban areas worldwide. Detecting and addressing these leaks is particularly difficult in cities in India due to factors such as aging infrastructure and ongoing construction activities leading to frequent pipeline breakages. This study introduces a novel approach to tackle the problem by developing an IoT-based Water Leak Detection System. The system employs two strategically placed sensors—one at the water source and another at critical monitoring locations—to monitor and compare water flow rates. By analyzing the disparity between the volume of water measured at the source and destination points, potential leaks can be identified. Furthermore, the system proposed incorporates distance calculations into the system to provide more comprehensive insights, thus paving the way for further advancements in IoT monitoring systems for enhanced water management practices.