Water is so vital to human life, including food preparation, drinking, washing and irrigation, it is also necessary
in massive quantities for industrial processes. Yet, it is a limited resource that must be collected and distributed
with care. Many parts of the world are currently facing water shortages while other areas contend with severe
water pollution. The story of Ilaje, the riverren oil producing area of Ondo State, Nigeria is pathetic. Being a
very large area, 10 communities representing 5% of the affected areas was randomly selected for this study. The
use of questionnaire survey, interview, opinion survey and personal observation were the methods of
investigation adopted for this study. Based on these, this paper critically examines the water supply situation of
the people that lives on water, but lack good drinking water. It identifies that all the inhabitants of the area did
not have access to good drinking water and that the people have not yet felt the impact of the government in
programmes to increase the water supply. Finally, the paper recommends the various ways to address the
problems of water supply in the area including the application of water poverty index, concept of social well
being and environmental planning and management process as tools for achieving sustainable development in
the area.