Water is a basic source and amenity for all life forms on Earth. Still billions of people face water related issues which have a huge impact on their livelihood. Resources and innovations which are cost effective and high quality will increase access and help in addressing the water related problems especially in the resource constrained environments and settings. Frugal innovations have a great potential and a space for contribution in this domain particularly due to the focus on affordable and quality innovations. In order to have a maximum impact of an innovation, it's important to involve consumers as active participants. Frugal innovation allows customization of the innovation to the needs and economic expectations of the user. This article emphasizes on the role of frugal innovation in impairing sustainable solutions to the water-related developmental challenges. It also discusses how different institutions and sectors like private and public can play a key and complementary role in defining and addressing the water challenges using frugal innovations.One of the most essential components for sustenance of living beings is water. Yet, billions of people lack water and sanitation facilities, 2.2 billion people have no access to safe drinking water and it is projected that water scarcity could displace 700 million people by 2030. Each day, nearly 1000 children die due to preventable water as well as sanitation associated diarrheal diseases [1]. The hydrological cycle, which guarantees that water cycles continually on Earth, provides humans with a number of essential services, including clean water and food as well as natural ecosystems. A rising demand for products and services, including basic needs like shelter, electricity, food, and water, has been caused by economic expansion topped up with population increase, fast urbanization, and industrialization. Additionally, these factors raise demand for home and industrial water, especially in emerging nations [2]. The bulk of the poor and lower middle income nations are found in Africa and Asia, which are also home to the vulnerable areas dealing with water difficulties. Water-related issues are anticipated to have an impact on many processes in multiple industries because of the interdependencies between water and value chains.