The smart water management system based on the IoT will be described in this paper using the Random Forest machine learning algorithm to alert us of the need to conserve water. IoT sensors are incorporated into the system to monitor data related to water levels, consumption rate, and environmental conditions thus applying the Random Forest model to forecast the water demand. It also endeavours to continuously analyse data which makes it possible for the system to effectively study the usage of water and this eliminates wastage of this valuable resource. Also, the Random Forest algorithm provides additional means for decision-making that defines the perennial supply and demand of water in a company for proper water distribution. Thus, this approach proves that IoT with the aid of machine learning can enhance the aspect of efficient water management, mainly in the areas with strict water rationing and environmental issues.