In many developing countries, such as Bangladesh, water quality and the risk of water-related diseases are serious public health concerns. The present study's goal was to ascertain the water supply quality and to characterize and analyze its suitability for drinking purposes in the municipal area of Sirajganj Town, Bangladesh. Fifteen water samples were randomly collected from different municipal wards and analyzed for various physicochemical properties, including hydrogen ion concentration (pH), electrical conductivity (EC), total dissolved solids (TDS), dissolved oxygen (DO), acidity, total alkalinity (TA), total hardness (TH), arsenic (As), and iron (Fe) concentrations. The results were compared with the Environmental Conservation Rules (ECR) and World Health Organization (WHO) recommended standards. All the physicochemical parameters were found to be within the prescribed permissible limits. The pH values, which ranged from 6.61 to 7.73, were neutral to slightly alkaline. The TH value varied from 204 to 284 mg/L, indicating that the supply water type was hard. Hence, it was suggested that the local water treatment plant should soften the water supply before consumption. In the case of DO and Fe, the DO values varied from 2.0 to 3.9 mg/L, which were far below the levels prescribed by the ECR recommended standards. Fe concentration in some areas exceeded the WHO recommended standards, probably due to the corrosion of old metal pipelines and improper treatment of groundwater before distribution in the supply network. The existing water supply in Sirajganj Municipality was at a satisfactory level, but weaknesses in the current water supply management system were identified, and there was a continuous lack of service provisions. Suggested measures include consistently monitoring water distribution networks, promptly repairing and maintaining overhead and service tanks, establishing database management systems, regulating private investment, adopting advanced technology, ensuring provisions for staff training, and implementing a rights-based approach in water supply production.