Water resource management represents a fundamental aspect of a modern society. Urban areas present multiple challenges requiring complex solutions, which include multidomain approaches related to the integration of advanced technologies. Water consumption monitoring applications play a significant role in increasing awareness, while machine learning has been proven for the design of intelligent solutions in this field. This paper presents an approach for monitoring and predicting water consumption from the most important water outlets in a household based on a proposed IoT solution. Data processing pipelines were defined, including K-means clustering and evaluation metrics, extracting consumption events, and training classification methods for predicting consumption sources. Continuous water consumption monitoring offers multiple benefits toward improving decision support by combining modern processing techniques, algorithms, and methods.