Background: Recent developments in optical satellite remote sensing have led to a new era in the detection of surface water with its changing dynamics. This study presents the creation of surface water inventory for a part of Pune district (an administrative area), in India using the Landsat 8 Operational Land Imager (OLI) and a multi spectral water indices method. Methods: A total of 13 Landsat 8 OLI cloud free images were analyzed for surface water detection. Modified Normalized Difference Water Index (MNDWI) spectral index method was employed to enhance the water pixels in the image. Water and non-water areas in the map were discriminated using the threshold slicing method with a trial and error approach. The accuracy analysis based on kappa coefficient and percentage of the correctly classified pixels was presented by comparing MNDWI maps with corresponding Joint Research Centre (JRC) Global Surface Water Explorer (GSWE) images. The changes in the surface area of eight freshwater reservoirs within the study area (Bhama Askhed, Bhatghar, Chaskaman, Khadakwasala, Mulashi, Panshet, Shivrata, and Varasgaon) for the year 2016 were analyzed and compared to GSWE time series water databases for accuracy assessment. The annual water occurrence map with percentage water occurrence on a yearly basis was also prepared. Results: The kappa coefficient agreement between MNDWI images and GSWE images is in the range of 0.56 to 0.96 with an average agreement of 0.82 indicating a strong level of agreement. Conclusions: MNDWI is easy to implement and is a sufficiently accurate method to separate water bodies from satellite images. The accuracy of the result depends on the clarity of image and selection of an optimum threshold method. The resulting accuracy and performance of the proposed algorithm will improve with implementation of automatic threshold selection methods and comparative studies for other spectral indices methods.