Research of prospects for achieving sustainability of urban water supply systems as an integral part of the urban management system in order to reduce pressure on water resources and ensure continuous access of the population to quality water through the formation of an effective water management system and innovative water supply.Goal. Development of proposals for assessing the effectiveness of urban water management and highlighting the stages of the study of the feasibility of introducing innovative water supply from the standpoint of ensuring the sustainability of urban development in the direction of “cities with water” (i.e., the reuse of treated wastewater and the implementation of projects of automatic irrigation systems in the urban economy). Method or methodology. Analytical and logical methods, theoretical developments on water resources efficiency management in their interrelation with other sectors of the urban economy were used. The methodology of the research is based on the provisions of the general theory of systems and institutional economics. Results. It is shown that effective water management is an important element for overcoming the barriers to achieving sustainable development of the water sector and cities in general, as well as mitigating the negative impact of global trends. Suggestions are given for assessing the effectiveness of urban water management. Imperative requirements are formulated for integrating the water management complex into a single urban management system in order to smooth out the fragmented practice of managing various sectors of the urban economy that has developed in practice. It was emphasized that the achievement of sustainable urban development is impossible without innovative water supply - the introduction of the principles of a circular economy and the best available technologies in the urban economy. Automatic irrigation systems are an example of using the best available technologies for innovative water supply, which allow achieving significant savings in urban water resources, as well as use treated wastewater when irrigating urban areas. It is emphasized that such systems, with their proper design, installation and maintenance, can become an effective element in the environmentally sustainable development of urban economy in the direction of “smart cities”, “cities with water”, which also satisfy technological, social, environmental, economic, institutional, cultural requirements. It is shown that the practice of reuse of treated wastewater should be taken into account when developing a long-term strategy for the development of urban water management, taking into account socio-economic circumstances, environmental and climatic conditions, cultural and religious preferences, existing legislation, participation in international projects, as well as political readiness for their consideration and implementation. The constraining factors of the introduction of wastewater reuse and automatic irrigation systems (including those using treated wastewater) were highlighted -The lack of a clear policy defining wastewater reuse as part of water resources, the institutional framework for the implementation of such projects, reliable quantitative and qualitative data, limited financial resources, environmental risks, as well as the lack of culture of maintaining landscape areas, and the lack of specialists for designing, modernize and maintain such systems. Suggestions are given for conducting a comprehensive phased study of the feasibility of introducing the practice of reuse of treated wastewater and automatic irrigation systems, which takes into account not only the expenditure and return on such projects, but also provides the opportunity to assess the effectiveness of using both of them in conjunction with the environmental reasonableness of their application, cultural and historical aspects, social priorities, quality of life in the city, economy and budget of the city. Scope of the results. They can be used by the executive structures of the municipal economy in the management of the city water management complex, as well as other state and local government bodies, in researches related to water supply and drainage, in the solution of ecological issues. Conclusions. It is proved that sustainable urban development is impossible without rational use of water resources, taking into account the principles of the “water hierarchy”, building an effective management system and using innovative water supply with elements of a circular economy (reuse of treated wastewater and the best available technologies (in particular, automatic irrigation systems) ) Achieving these goals is impossible, among other things, without the free exchange of information between participants in the water process, the objectivity and transparency of WR management assessments, taking into account structural and market drivers. Proposals have been developed to assess the effectiveness of water resources management from the perspective of incorporating theoretical developments in the field of water supply into the general theory of city management and integrating water management strategic measures into the systemic practice of urban economy It is shown that the reuse of treated wastewater is one of the alternative sources of water in regions with limited water resources, which should be considered as part of the “water hierarchy” and sustainable development of water management in the framework of water management. And the effectiveness of projects using TWW, incl. in AIS, reflects specific urban tasks, taking into account the expansion of urban boundaries, population growth; local legislation, financial opportunities. The problems that hinder the expansion of the practice of reuse of treated wastewater and the wider introduction of automatic irrigation systems are identified. This is the lack of a clear policy defining wastewater reuse (RW) as part of WR; legal and institutional framework for the implementation of such projects; financial resources; environmental risks. Studies related to water RW are complicated by the lack of reliable quantitative and qualitative data, their fragmentation, and often their closeness. As for the AIS, one of the limitations of the wider implementation of modern AIS (including the use of TWW) is due to the lack of a common culture and knowledge of public officials about the advantages of these systems and the lack of an appropriate structure for their further operation and modernization.