Most of the urban areas in India depend on Government water supply for their daily usage. The amount of water supply will be limited and provided in a short period of time by the Government. According to the climate and environmental changes the amount of water will be varied. Now many private companies have emerged in the field of water supply to sell water to gain huge profit. But still Government water supply is the main source for common people in urban areas of India. Most of the water connections are given to the individual home by plastic or steel pipes through underground or overground. It is very easy for a person to steal the water from the pipeline illegally. Others cannot identify the theft easily and they will be cheated. Consequently, water availability/supply for the homes in that area will be reduced. A system has been proposed in the paper to find and stop the water theft in an area using the sensors and IoT technology. This system can also identify the leakage of pipes anywhere in the line.