Efficient water management is essential for sustainable smart city development, addressing critical challenges such as resource scarcity, infrastructure inefficiencies, and environmental sustainability. At the household level, inefficiencies such as prolonged showers, undetected leaks, or excessive kitchen water use often go unnoticed due to the lack of fine-grained monitoring. The Internet of Things (IoT) has emerged as a transformative technology for modern water management, enabling real-time data acquisition, intelligent control, and system optimization. By deploying distributed sensor networks and integrating advanced data analytics, IoT systems enhance operational efficiency and support proactive decision-making in water supply, distribution and consumption. This paper presents a Smart Water IoT Monitoring System designed for domestic settings, integrating advanced sensing technologies and Edge AI processing to optimize water consumption. The proposed system leverages a multisensor architecture and LoRa-based wireless communication to ensure efficient data collection and real-time processing. By classifying water consumption patterns and detecting anomalies, the system contributes to enhanced resource management and sustainability efforts. The experimental results demonstrate the system’s feasibility for accurately classifying water consumption points, highlighting its potential for smart home and urban water management applications.