The provision of clean drinking water and discharge of adequately treated wastewater is a fundamental requirement for human life. The lack of access to clean water is a serious health concern. According to reports, worldwide, over a million deaths per year have been attributed to unsafe water and poor sanitation, with close to 90% of these deaths occurring in children under five years of age. This study was therefore, aimed at reviewing and evaluating the Nigerian drinking water supply and distribution sector, with particular reference to the historical perspective and organization structure; water law and profile in respect to meeting the millennium development goal target for improved water supply and distribution. Although there is temporal and spatial variation in water availability between the North and the South in Nigeria, the country is considered to be abundantly blessed with water resources. Nigeria has a national water supply policy, whose objective is to ensure adequate, affordable and sustainable access to safe drinking water for all citizens. Despite the existence of several government agencies, whose roles are to enhance efficient water supply and distribution to all citizens in Nigeria, current access to improved drinking water in Nigeria is still low, with improved water supply and increasing from 47% in 1990 to 58% in 2008. According to report, Nigeria water supply situation has not kept pace in meeting the millennium development goal target of 75% coverage for safe drinking water. For improved water supply coverage, there is the need for enforceable water legislation, building of institutions and policies related to water resource planning, development and management, demand management and privatization of the water supply and distribution sector. Through deliberate reorganization of socioeconomic policies regarding the water supply sector, a significant increase in the proportion of people with access to improved drinking water source can be attained.