Climate change, water supply limits, and continued population growth have intensified the search for measures to conserve water in irrigated agriculture, the world’s largest water user. Policy measures that encourage adoption of water-conserving irrigation technologies are widely believed to make more water available for cities and the environment. At the time of Independence, i.e., in 1,947, the per capita accessibility of water in India was 6,008 cubic meters a year. It boiled down to 5,177 cubic meters a year in 1951 and to 1,820 cubic meters a year in 2001. As per midterm examination (MTA) of the tenth Plan, per capita accessibility of water is probably going to tumble down to 1,340 cubic meters in 2025 and 1,140 cubic meters in 2050. Nearly 40 percent of water demand in urban India is met by groundwater. So groundwater tables in most cities are falling at an alarming rate of 2-3 meters per year. Another factor is water leakage. This article analyses the distribution of water in the Indian subcontinent and how the Rainwater harvesting system has panned out so far in the Indian context. It focuses on the areas that need improvement and the consequences that follow if we humans don't stop the wastage of this precious commodity.