India's Urban population of 250 million is likely to touch 500 million by the year 2021. This fall out explosion will have deteriorating effect at rapid rate on infrastructure facilities, i.e., water supply, electric supply, sewerage, besides housing, transport and communication. As per statistics, US$ 14,600 million would be required to supply water and sanitation but likely investment in 9th Five Year Plan is merely US$ 1,150 million and contribution of internal and external financial assistance of US$ 2,300 million, will make short fall of around US$ 11,000 million. Therefore, to augment in resource and to meet the gap, the methodology has to be drastically changed. 'Free water' concept has to be changed. As wastewater treatment is an expensive procedure, appropriate solutions with cost effectiveness are to be found. Central/State/Local Governments must take the ground realities into consideration. Maximizing the water treatment and reuse of water on-site reduces new water sources and discharge cost.