Urbanization is happening in very rapid pace in developing countries.Many developing failed to provide basic living requirements to its citizens. Basic living requirements include access to water, health services, education, transportation and so forth.In the context of drinking water, it is the urban population that got hit hardest. Nepal is no exception to realize drinking water deficit in urban areas. It is estimated that more than three million residents of Kathmandu demand 320 million liters of water per day. However, line-agencies have been able to meet one-fourth of the water demanded. To understand and address the problem of drinking water in developing countries, comprehensive studies about drinking water and urbanization is prerequisite. Similarly, proper management of water sources, efficient and effective water distribution channels, and co-operation and coordination among line-agencies are needed to ensure regular water supply for city dwellers.