With forecasts indicating that by 2050, 50% of the world’s population will reside in areas experiencing significant water shortages, the need for sustainable water management strategies and practices has become increasingly urgent. In line with the Sustainable Development Goals for fair access to water and responsible use of natural resources, new digital technologies could promote effective freshwater consumption and pollution monitoring, control, optimization, and forecasting. Smart water management has been accelerated by the use of sensors, the Internet of Things, machine learning, and big data analytics. By 2050, two-thirds of the world's population will reside in cities, hence this study focuses on how digitization affects sustainable urban water management. More precisely, research in the scientific literature was examined to find useful information about smart water technologies used in urban settings, with a focus on supply and distribution networks. Using a systematic approach, the review analysis results were categorized based on three primary pillars: (i) the level of analysis (i.e., residential/industrial or municipal); (ii) the technology used (e.g., sensors, algorithms); and (iii) the research scope/focus (e.g., monitoring, optimization). It is anticipated that this study will serve as a methodological tool and a roadmap for the most relevant cutting-edge research initiatives to incorporate digitalization into the field of water stewardship and enhance urban sustainability. This study proposes a technology-driven framework for sustainable smart water management in Navi Mumbai City, integrating Internet of Things (IoT)–based sensing, real-time data acquisition, advanced data analytics, and decision-support mechanisms. The framework aims to enhance water use efficiency, minimize non-revenue water, improve supply reliability, and support environmentally sustainable water governance.