Water resource management is a critical aspect of sustainable urban development, especially in densely populated and water-stressed states like Uttar Pradesh. This study evaluates the outcomes of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) across 61 urban local bodies in Uttar Pradesh, using primary data from 400 beneficiaries and secondary data from State Annual Action Plans. Key findings reveal a 48% increase in water tap connections and a 29 percent rise in sewerage coverage between 2015 and 2020. Regression analysis (R² = 0.771) confirms the strong influence of water infrastructure on service delivery satisfaction. This work uniquely integrates beneficiary perspectives with performance metrics, offering a comprehensive policy-impact analysis of AMRUT. By benchmarking outcomes against earlier studies, the novelty lies in establishing a robust, evidence-based assessment framework that can guide AMRUT 2.0 implementation. The study highlights the importance of community participation, policy coherence, and smart infrastructure planning in ensuring water security.