The rate at which water scarcity is increasing in India is astronomical. Over 50% of the population is facing a shortage of water. Domestic wastewater (including kitchen, the treatment of waste and bathroom waste is essential for the proper treatment of wastewater) uses it again for recreational and agricultural purposes. In India, sewage amounts to less than 50%. Only the water is treated whereas the rest is disposed of without treatment. The untreated water is causing pollution in the area. Water sources could have negative impacts on both water quality and aquatic life. This paper examines different types of domestic wastewater treatment plants and discusses their benefits and restrictions. The study suggests a cost-effective wastewater management system based on the existing literature.