Nigerian standard for drinking water quality 2007 emphasized that all water service providers including State Water Agencies and Community Water Committees shall develop a water safety plan. This ensures the minimization of contamination of water supply from source, reduction or removal of contamination through treatment processes and prevention of contamination during storage, distribution and handling of drinking water. The aim of this study is to explain the meaning of water safety plan and highlight its importance including the ways it can be employed to achieve enhanced piped distribution of drinking water of good quality. The assessment of its level of development in Nigeria, the extent it can be employed to improve the present low health status of Nigerian urban populace, as well as its implication to general urban development in the country were discussed. It is concluded that an articulate and urgent water safety plan are necessary for the sustainability of urban water supply.