An apparent paradox in Mumbai’s water scenario is the point of departure for this study. On one hand, the city is blessed with ample water resources and is governed by a financially and institutionally strong urban local body. On the other hand, in stark contrast, the poorest sections of Mumbai residing in slums of Mumbai, lack access to water. Thus, the denial of water access to the poor is the result of unequal distribution rather than of water scarcity. The study hence aims at unearthing the political economy of water operating at the slum level. To achieve this, the study draws from in-depth semi-structured interviews, as well as a few informal group discussions involving approximately more than forty respondents. The findings show that certain political actors dominate the slum-level political economy of water. Each of these actors have special interests which they try to promote through diverse activities, using different types of power which are derived from a range of sources. The local political economy dominated by local politicians and their acolytes controls alternative channels of water provisioning while ensuring denial of access to the formal water network to the poor. Understanding this political economy will help on one hand, in providing formal water access to the poor and on the other hand, in designing effective policies to regulate informal water provisioning in slum areas.