Globally rising temperatures, droughts and unanticipated natural storms are an outcome of climate change having a direct impact on the quality and quantity of water available for human consumption, particularly in urban areas. By 2030, it is foreseen that India will have 68 cities with over a million people and 6 megacities. Utilising water resources wisely and taking a holistic approach are necessary for sustainable water management. This includes reducing water consumption patterns, using blue-green strategies, capturing storm water run-off and water from rainfall, and finding alternate water sources that collectively increase resistance to climate extremes. Integrating multiple such micro interventions aid in a paradigm shift leading to responsible use of water resources. This article delves deeply into the crucial connection between climate resilience and urban design, stressing the importance of networked localised solutions. It presents a comprehensive study and a set of context-based strategies enabling planned urban development increasing a neighbourhood’s carrying capacity for better water management making it resilient to the wrath of climate change and haphazard urbanisation. Thus, by emphasising the significance of developing integrated, water resilient neighbourhood modules through a comprehensive approach, a cohesive framework promoting climate resilient urban development shall be achieved.