This research paper investigated policy intervention and the sustainability of water resources in the context of the last 20 years. It analyzed the role of law, policy and institutional interventions in water conservation, management and equitable use in urban and rural spaces. The information was gathered from policy documents, water resource assessment reports and other data from various regions in India. The results indicate that some policy interventions improved water conservation and community participation, but weak enforcement and insufficient compliance monitoring frequently hindered the long-term sustainability objectives. Integrating watershed management principles like coupled technology in water and soil conservation measures like traditional water harvesting had optimal resource conservation results. Yet blind spots remained on reducing industrial pollution, unsustainable abstraction of groundwater and equitable access in the poorest communities. The research found that an integrated, adaptive, and participatory policy environment was vital for achieving sustainable water resources under the threats of climate change and population growth. Policy suggestions and future research directions were also provided.