Water is one of the basic needs of all living beings. Wastage of water is one of the most significant reasons for water shortage around the world. At the household level, overflow of water from the overhead tanks may happen without our knowledge. Hence to prevent this and to save water at least for a certain extent, implementation of an automatic water level manager can be a solution. Significance of the proposed system is that the device can detect the level of water in the overhead tank and according to the level of water, the motor pump is switched on/off automatically by Arduino. Level of water in the sump can also be monitored. The information is sent to the controller for a decision whether water has to be pumped to the overhead tank. Additionally, the system senses continuous flow of water, if present, as possible leakage and issues alarm.