Water scarcity is a critical global challenge affecting billions of people, particularly in developing regions like sub-Saharan Africa. In Ghana, this issue has become increasingly pronounced, with limited access to clean and safe water posing serious threats to the health and livelihoods of many communities. This study investigated the intricate relationship between water scarcity and accessibility, and the associated implications on sanitation practices in Damongo, a newly created regional capital and an emerging city. The study showed that the area faced evident water scarcity, with a daily per capita water consumption as low as 0.128 m3. Mechanized boreholes emerged as potential solutions, particularly for the 61.2% of respondents experiencing waiting times exceeding 15 min. The economic repercussions were noteworthy, as high water costs impacted livelihoods, emphasizing the need for policy interventions, especially for low-income households. Sanitation challenges are widespread, with 62.8% relying on pit latrines, and 56.1% lacking proper infrastructure. Water and sanitation-related diseases like typhoid and diarrhoea highlight the need for urgent interventions to enhance water quality and sanitation practices. Household water infrastructure analysis revealed diverse, primarily privately owned sources. Gender imbalances persist in water-fetching responsibilities, with 58.2% relying solely on females. Domestic water sources predominantly involved traditional options, potentially exposing residents to unsafe practices. Sanitation maintenance practices and intervals varied, signaling the necessity for comprehensive solutions. Households without toilets resorted to open spaces (43.6%), gutters (29.1%), and public toilets (12.7%), indicating challenges in waste disposal and sanitation facility access. Insights on the health dimension considered uncovering the prevalence of the top five water and sanitation-related diseases for 2022. These included typhoid (24.3%), diarrhoea (30.0%), Cholera (11.7%), Dysentery (14.6%), and Hepatitis (19.3%). These findings suggest the pressing need for improved sanitation and clean water access, as inadequate infrastructure and water scarcity contribute significantly to these health challenges.