The development of groundwater resource and its utilization is a dynamic phenomenon which requires frequent monitoring. Multi-temporal satellite images help in periodic monitoring of groundwater development which in turn helps in controlling the overexploitation and indiscriminate use of groundwater in some pockets leading thereby to scarcity of water for drinking and other essential uses. Proper monitoring of groundwater for projecting the drinking water sources assumes greater significance for a semi-arid country like India with competing demands for water. Due to continuous pumping of water for irrigation, the drinking water sources may get dried up. Some of the stateGovernments have already brought legislation to protect the drinking water sources. In this endeavor too, satellite data form a very valuable tool in monitoring the groundwater utilization for irrigation closer to the drinking water sources and also in the over-exploited zones.