Urbanising cities of India are engulfing the peri-urban land and water resources. Informal water sellers, who transfer water from peri-urban to urban areas, meet the growing water demand in Hyderabad, one of the fastest growing cities in India. This article qualitatively explores how informal water tankers are changing the flows of water, posing challenges to water access for peri-urban residents. We conclude that apart from the state's infrastructural and capacity challenges to provide piped water, power interplay between actors is responsible for the mushrooming of informal water markets. The transfer of water has contributed to groundwater depletion as well as to the water insecurity of peri-urban residents.