Urbanization is the core process in the development of the economy of every nation which boosts economic growth and development at one side, the demand for facilities and resources on the other side. Nowadays, the most common solution for the healthy growth of urban islands is to make cities smart. Therefore, smart development aims to provide a better quality of life in the context of existing urban planning issues which focuses on providing the infrastructure services and utilities to urban settlements with the integration of modern technology. Sustainable development is one of the most important components of smart city planning and development. This sustainability can be achieved through smart planning and management of natural resources which includes optimum use, recycle, and reuse. In the present book chapter, various components of the smart city, the importance of water sustainability in smart cities, the role of climate change, and smart water management for smart cities have been discussed.