Decentralized water supply systems, treating the water in users’vicinity, cutting down the distribution system, utilizing the alternative water resources(rainwater harvesting, water reclamation and reuse and so on.) and saving energy and other resources, could be categorized into POU(Point-Of-Use), POE(Point-Of-Entry) and community small scale system. From the literature review, we could thought that decentralized water supply system and hybrid system(integrating centralized and decentralized water supply system within urban water management) might have strengthening comparative advantages to centralized system with respect to: (1) water security, (2) sustainability, (3) economical affordability. Even though it is difficult to derive and quantify direct benefit advantages from decentralized and hybrid system in comparison with centralized system, (1) operational cost reduction, (2) assurance for safe and stability water supply and (3) greenhouse gas reduction can be expected from successful establishment of the former.