Water management is critical for long-term development and the preservation of essential natural resources. Traditional water management strategies are becoming increasingly ineffective in dealing with developing water shortages and the need for efficient resource allocation. The incorporation of smart contracts, which are supported by blockchain technology, presents a viable answer for reshaping water management techniques. When combined with internet of things (IoT) devices that give real-time data on water use, quality, and environmental conditions, a powerful alliance is formed that has the potential to alter traditional water management practices. The concept of smart contracts self-executing agreements with established rules that trigger automatic activities upon the fulfillment of specific criteria lies at the heart of this fusion. The use of blockchain technology has emerged as a disruptive option to alleviate water scarcity and ensure equal distribution in the goal of sustainable water management.