The urban water system is experiencing a paradigm transformation. The water friction between ecosystems and society seriously threatens sustainable development of water-stressed regions. This study presents a system dynamics model comprising environmental, physical, and socio-economic sectors to explore the complex interactions within the urban water system. Two study sites, South Dum Dum and Siliguri, are considered for their contrasting, distinct, and varying natural and anthropogenic pulls to enrich global application potency of the model. The components involved in the model have quantifiable and qualitative characteristics. The functions and relations are derived using dimensional homogeneity concepts and analytical hierarchy processes for quantifiable and qualitative components. The results show a quantitative and qualitative water paucity index score of 1.1187 and 3.25 for South Dum Dum and 0.7587 and 1.00 for Siliguri, respectively. The results highlight the position of South Dum Dum as a water paucity region compared to Siliguri. There is significant scope for the model to deliver a pinpoint contribution to the sustainable management process. The water paucity index, an integrated model, helps to manage and resolve water stress issues and move a region towards achieving the sustainable development goals (SDGs) 3, 6, 11, 13, and 17.