This paper summarizes the various dimensions and impacts of urbanization on Pakistan’s water resources in order to provide foundations for future water policy that will lead towards country’s socio-economic development. Urbanization is considered as a major trend of 21st century in many developing countries. Along with urbanization, increase in population growth in recent years has put a pressure on the world’s water resources in terms of water demand and pollution. Various issues related to water sector in urban areas of Pakistan have been identified including contamination of surface and ground water resources through industrial, agricultural and domestic discharge of waste and waste water, increasing floods, loss of wetlands and aquatic biodiversity, sea water intrusion and subsidence, physical reduction in water resources quantity and quality and operational and managerial incapacities. There are some other issues like unequal water distribution which together with population burden, rapid urbanization and growing industrialization are posing a huge challenge for Pakistan’s water management in 21st century. Taken together all the studies, this review suggests that to reduce vulnerability to water resources of Pakistan, there is a need for new systems of urban planning and governance institutions as the core of Pakistan’s water crisis is water management.

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