Elevated water tanks are considered crucial infrastructure due to their significant role in supporting essential services. A strong ground motion may result in a failure or significant damage to a reinforced concrete shaft of an elevated water tank because hysteric energy dissipation is limited to the formation of plastic hinges at the base of the shaft, while the nonlinear properties of the rest of the shaft remain underutilised. The innovative system of assembling RC shafts for elevated water tanks using a slit wall technique was developed to enhance energy dissipation along with the shaft height by introducing slit zones. The comparative nonlinear dynamic analysis between three-dimensional models of elevated water tanks with different shaft diameters and heights was conducted using SAP2000 software. The results of elevated water tanks with slit and solid reinforced concrete shafts were compared. The research findings showed that during a seismic event, the slit zones increased the ductility of the shaft, reduced stress concentration in the lower part of the shaft, and provided uniform stress distribution throughout the shaft's height. The effect of the innovative system is especially noticeable in the elevated water tanks with tall and slender shafts.