Abstract: Ensuring drinking water safety is critical to public welfare, directly impacting public health and social stability. In China, rapid economic development and continuous improvement of living standards have led to an increasing demand for high-quality drinking water. This article systematically examines the current state of China′s drinking water industry, identifies major challenges, and explores potential solutions to improve water quality and establish high-quality water supply systems aligned with the country′s development goals. China′s drinking water supply systems have made significant progress over the past decade: Urban water supply coverage has reached 99.43%, and the overall water quality compliance rate has increased from 52.8% in 2009 to over 96.0% in urban areas. Despite these advancements, several key challenges remain that hinder the establishment of a sustainable, high-quality water supply system. One primary challenge is biological risks, including chlorine-resistant microorganisms and antibiotic-resistant genes. These pathogens thrive in distribution systems, particularly within biofilms, which protect them from standard disinfection methods. Emerging chemical risks, such as per- and polyfluoroalkyl substances (PFAS), present further complications. PFAS are widely distributed, persist in the environment, and pose serious health risks, yet conventional water treatment technologies show limited effectiveness, with some municipal plants achieving less than 20% removal efficiency. Additionally, there are complex aesthetic issues, such as turbidity, taste and odor problems, often resulting from aging infrastructure and biofilm formation. These issues are compounded by climate change, exacerbating risks to water quality through extreme weather events such as floods, droughts, and rising temperatures. These factors make it even more difficult to maintain stable and safe drinking water quality. To address these challenges, a comprehensive approach is necessary, focusing on improving water quality standards, upgrading technologies, and integrating smart management practices. A key recommendation is the construction of a whole-process water quality assurance system that encompasses the entire water supply chain: From the source, through the treatment plant, distribution networks, and secondary supply, to the tap. Technological advancements, such as ultraviolet oxidation, activated carbon adsorption, and membrane filtration, should be prioritized to effectively remove emerging contaminants like PFAS and minimize the formation of disinfection by-products (DBPs). Infrastructure improvements, including the use of corrosion-resistant materials, advanced pipeline cleaning techniques, and intelligent monitoring systems, are essential to reduce risks associated with aging infrastructure and biofilm formation. Additionally, the integration of real-time monitoring, data analytics, and machine learning technologies can facilitate proactive water quality management, ensuring that water systems can adapt to dynamic challenges and maintain safe drinking water standards. These efforts will promote the goal of providing safe, high-quality drinking water to all households, improving public health, and contributing to China′s sustainable development.