This journal paper focuses on water development. It argues that because of the lack of sound early development policy and meaningful investments, the rational use of water resources poses a great problem and challenge to the country. The River Basin Development Authorities, set up to manage the resources, along with the state government ministries and the private sector have all impacted on the management of water resources. The paper examines the sources of surface and ground water resources in Nigeria; the goal and present organisation of water management in Nigeria groundwater protection and vulnerability, water management under drought and flood conditions. Suggestions are made on ways of planning sustainable water supply systems for Nigeria.