China is the leading industrial giant of the world, and apparently, the most progressive country in the past few decades. However, to achieve global recognition at all levels, China's government overlooked various factors while initiating the process of urbanization and industrialization. Large number of industries sprouted within a few years but poor systematic network and municipal planning resulted in adversely affecting the already scarce fresh water sources in China. All the major rivers and lakes have become so polluted that people are dying by drinking the water. Numerous ailments, environmental problems, societal disturbances and economic burdens are faced by Chinese government for exploiting and overusing fresh water sources. Today, China stands at a crossroad where little choices are left to protect and preserve the natural reservoirs. This paper highlights the reasons behind the water-pollution crisis in China, along with the significant pollutants plaguing the purity of its water sources. Furthermore, some notable suggestions are also included, which might prove helpful in controlling this grave crisis.