Sustainable water management plays a key role in shaping cities that are both livable and environmentally responsible. As urban areas grow and climate pressures intensify, the need for smart, adaptive water strategies becomes urgent. This paper looks at how practices like green infrastructure, water reuse, and digital monitoring contribute to healthier urban environments. Using the Integrated Urban Water Management (IUWM) model, we explore examples from Melbourne and Barcelona to show how cities can reduce consumption, manage resources more efficiently, and improve resilience. The study emphasizes that lasting change requires more than technology—it calls for coordinated policies and strong collaboration between institutions and communities.