Water is fundamental to life and underpins the functioning of ecosystems, economies, and human well-being. Despite covering nearly three-quarters of the Earth’s surface, only a fraction—less than 0.5 percent—is readily available as freshwater suitable for human use. Rapid population growth, urbanisation, agricultural expansion, and climate variability have placed unprecedented stress on finite freshwater reserves. The case of Cape Town, South Africa, represents one of the most instructive urban water crises of recent decades. Following three consecutive years of extreme drought beginning in 2015, the city faced the imminent threat of “Day Zero,” when municipal taps were projected to run dry. This paper analyses the evolution of Cape Town’s water crisis, its underlying causes, and the range of mitigation strategies adopted by city authorities—including demand-management measures, supply augmentation, public education campaigns, and regulatory reforms. The study highlights the critical role of governance, behavioural adaptation, and policy coherence in averting complete urban water collapse. It concludes with lessons for other water-stressed regions seeking to build climate-resilient and sustainable water systems.