The increase in population and living standard increases the demand of drinking water. Lifting more water from tube well lowers the water level which ultimately needsmore energy for lifting water and more maintenance cost due to more wear.According to U.N. study 50%0f the potable water is wasted or lost in developing world through leakage in water supply system. Another report published by M.M.Joshi indicates that numbers of villages suffering fromwater crises are increased in FiveYear Plans, in spite of increased financial budget from33 crores to 2485 crores. It is observed that water crises is due to water leakage, poor maintenance, poor watermanagement and lack of financial budget.The conglomerated problemaccrue huge financial expenditure onwater supply system. The wastage of water ismore at high-pressure. It can be reduced by appropriate water pressure as reported by O.William. A case study of water supply system in K.N.I.T. campus is conducted during actuate water crises problem. It is observed that more 50% of total water is wasted through valve and tapes leakage. The water leakage is mainly due to high pressure and poor maintenance. The financial expenditure is much higher due to more wear in supply system. In this paper, causes of water crises in water supply system are analyzed and a water supply system with water conservation technique is also discussed, which indicates much saving in water, energy and revenue.