Abstract: The three challenges of a supply-side solution to the water crisis in India are (1) creating new potential for enhancing supply, (2) achieving equitable distribution, and (3) meeting the needs of sustainable development. These need to be handled concurrently and are becoming increasingly unattainable. The demand-side solution also presents three challenges: (1) creating new technologies for reducing water demand (2) bringing about changes in the societal mindset about water usage, and (3) initiating and enforcing water-related structural reforms. Though earlier considered complex, the demand-side solution now appears softer and attainable as compared to supply enhancement options now available. The paper advocates a paradigm shift in India's approach to the water resource problem, focusing on water management as a balanced approach. Also, it lists out the key initiatives and the institutional and regulatory reforms needed for bringing about the desired shift.