Water is essential for all living things survival. In this circumstance, the ever depleting water resources and their protection as well as sustainable consumption and supply of clean and potable water for increasing population is biggest challenge of 21^st century. Increasing population is increasing pressure on water. Water supply is an important contextual theme in planned economic development. The state is endowed with limited water resource that is stressed and depleting. Different sector demands are growing rapidly. Increase in population, urbanization, rapid industrialization and rising incomes are putting this resource under stress. Unless water resources are properly developed and managed, the state will face acute crisis within the next two decades. Serious destabilization of water sector affecting the hydrology, economy and ecology of state. Sustainable development requires wise policies and effective strategies that conserve, protect, manage fresh water to meet needs of human and other creatures. This paper focus on problems needs, sources, key issues of water resources challenges of water resources management in Karnataka with reference to Chikkaballapur district, the paper ultimately aims at recommending solution to the problem.