Water, though scarce natural resource is essential for life, livelihood and food security. Sustainable water supply system is important to build the resilience among Indian communities. Sustainable water supply means availability of sufficient water for present day needs, without compromising the needs of the future. The study deals with three aspects of drinking water i.e. Demand, Availability and Supply, which are basic to sustainable drinking water supply at district level for India. Analysis shows that eastern part of the country faces water scarcity which is created by demand-supply gap, although the region is abundant in natural water availability. The western arid part of the country such as the State of Rajasthan is comparatively better in comparison to eastern India, in terms of demand-supply gap of drinking water supply. But the state is yet lowly populated in comparison to southern and eastern parts of the country. Thereby, population increase urbanisation and exhaustion of natural availability of water poses a threat to the prospectus of sustainable water supply. Sustainability of water supply is a factor of environmentally sustainable, economically feasible, socially, regionally inclusive water supply system.