Microbially induced calcium carbonate precipitation (MICP) is an innovative biocementation technique that facilitates the formation of calcium carbonate within a pore network. Initially gaining prominence in the field of geotechnical engineering, MICP has attracted significant attention since its inception (the last three decades) and expanded its reach across various engineering disciplines. Examples include rock mechanics, geology and the oil and gas industry fields through the generation of rock-like specimens, and plugging of fractures, in civil and architectural engineering and material science for concrete repair, protection, and for self-healing of building materials, and in environmental engineering for the study of biomimetic materials. In response to this burgeoning interest, the current paper aims to present a comprehensive review of the main biochemical mechanisms underlying MICP (bacterial ureolytic activity, reactions duration and settling times, and chemical solution properties), their direct relevance to altering hydraulic and mechanical properties, both at the microscale and macroscale responses, and the precipitation mechanisms, particularly in relation to water resources and hydrology applications. Four main categories of relevant applications are identified, namely, the groundwater and soil remediation, the applications related to the generation of a low hydraulic conductivity barrier, those related to gaining cohesion, and the applications related to fluid flow studies in artificially generated porous media. Moreover, this comprehensive review not only aims to identify the existing applications of MICP within hydrological fields but also strives to propose novel and promising applications that can further expand its utility in this domain. Along with the investigation of the potential of MICP to revolutionize water resources and hydrology, it is imperative to delve deeper into its environmental implications to ensure sustainable and ecologically responsible implementation.