This study aims to shed light on the continued difficulties municipalities in South Africa are having in achieving SDG 6 and also explore the impacts of effective governance principles on ensuring sustainable development. To explore this, the study adopted a qualitative research methodology in a form of a conceptual research design to gather secondary data. The secondary data covering SDG 6 challenges and effective governance principles were reviewed and synthesized. Different databases were used to review data from July through October 2022, such as Google Scholar, Google, Sabinet, Scopus, and other online platforms. Different keywords were used to guide and search the existing relevant literature. Secondary data was analyzed using a critical discourse analysis approach. Because of South Africa's lax governance standards, the theoretical findings of this study demonstrate that there are growing concerns about achieving SDG 6 in the near future. However, it can be agreed that progress toward effective governance has been encouraged and promoted, but the challenges remain. Therefore, the study recommends effective and inclusive governance because, without it, South Africa will not achieve its socio-economic goals, like SDG 6. South Africa should put in place structures that support constitutionalism, accountability, democracy, and good governance if it is to meet its development objectives. It is important to overcome lax governance, which is characterized by mismanagement, fraud, bribery, corruption, and a lack of accountability, transparency, and public participation. Again, South Africa should have an efficient government that works to fulfil the localized SDGs and responds to community desires and aspirations enshrined in the Municipal Systems Act (Act 32 of 2000)