Water is an important natural resource for the economic, agricultural, industrial, and social development of any nation. Water management was a concern in India even before independence, but Dr. Babasaheb Ambedkar explained the importance of water management in the development of the nation. As the first Law Minister of independent India, Dr. Babasaheb Ambedkar contributed a lot in the legal framework for water policy, irrigation development multi-purpose river projects, and equitable distribution. This research paper gives special information about Dr. Ambedkar's vision and contribution to the Indian water management policy. Establishment of the Central Water Commission. Planning of the Damodar Basin Project. Hirakud Dam. Other irrigation development schemes. This paper also reflects his vision of inter-state water disputes and the concept of river interlinking. This study compares Ambedkar's water management ideas with the current situation of inter-state disputes in India's water crisis and their challenges in sustainable water governance. This research focuses on the socio-economic impact of water scarcity on agriculture and the affected communities, especially Dalit, tribal, and rural populations, who face the worst water scarcity. This research provides valuable suggestions for implementing Ambedkar's approach to achieve sustainable and inclusive development. The research concludes that Dr. Ambedkar was the inspiration for modern Indian water management. His integrated approach, combining legal, economic, and technical solutions, provides a guiding framework for solving contemporary water problems.