With increasing population and economic growth, water demand is likely to increase significantly in the future. Aggregate consumption in total demand, resulting in relatively low availability for domestic and industrial uses. Given the state’s increasing urbanization and industrialization trends, this is a major challenge for Gujarat’s water sector planning. Gujarat has made serious efforts through reduction in dependence on scarce ground water resources in all important areas of water sector such as source enhancement, source management and distribution management. This has been achieved through water grid and master planning and implementation of several schemes under the Sardar Sarovar Project, Sujalam Suphalam Yojana and SAUNI Yojana and Kalpsar as well small projects like Boribandh and Khet Talavadi. As these issues will become of major importance in the coming years and with increasing pressure on performance and investment in the sector, some areas will require more attention. Preparations for tariff rationalization, water distribution deficit reduction, sector reforms and private sector participation in these areas of improvement.