Municipal Commissioner Sitaram Kunte said he would review the crisis situation again within the next couple of days since rains have eluded the city.
Mumbai gets its water supply from six lakes - Tansa, Vihar, Tulsi, all in Mumbai, and Upper Vaitarna, Modak Sagar and Bhatsa, all on the outskirts of the city.
Water from another important source, Powai Lake in suburban Mumbai is used only for industrial purposes.
At present, Mumbai requires 3,600 million litres per day, but the civic corporation is able to provide only 2,900 million litres per day (MLD).
The situation is expected to improve in the next couple of years after the Middle Vaitarna project is completed.
Drinking water is distributed across the city through a century-old maze of pipelines that sees large quantities of wastage through leakages, pilferages and even deliberate damages to steal water.
Besides Mumbai, the Mumbai Metropolitan Region, comprising parts of neighbouring Thane and Raigad districts, is also in the grip of a water crisis.
All the major civic bodies in the region - including Thane, Navi Mumbai, Vasai-Virar, Mira-Bhayander, Kalyan-Dombivali and Bhiwandi-Nizampur - have reported severe shortage of potable water for public distribution.
Like Mumbai, all civic bodies are conducting regular meetings to review the bleak water scenario and chalking out measures to tackle the situation if the monsoon fails to revive soon.
The situation is worse in Pune, the state's cultural and academic capital, where only four percent water supply remains in the reservoirs.
Ajit Pawar Tuesday announced that from Wednesday, Pune would get limited water supply on alternate days till July 7, after which the situation would be reviewed.
The Times of India