The aim of this literature review research was to reveal evidence that helps understand the importance of the availability of safe drinking water in regional development of a country. The findings of the study are important when taking policy decision in regional development in all developing countries including Sri Lanka. First, the study revealed that availability of safe drinking water is a vital requirement for the development of a region. Second, it revealed that there is a growing demand for safe drinking water with the development of a region. If the government disregards this growing need of safe drinking water, the regional development would not be possible. When considering health matters, tourism, etc. which are important in regional development, availability of safe water is a pre-requisite. However, environmental problems that can be arisen when producing water and that can happen when consuming bottled water should be arrested with necessary action by the interference of government. If it takes a long time to give a solution for safe drinking water, the government should take steps to provide safe water until that sound solution is found.