A number of problems exist in water supply to Chinese small towns. Among them, the most significant problems are the scarcity of water source and irregularity of water supply system construction. Criteria for routine water sources are established based on the analysis of present characteristics and problems of water supplying in different areas in China, recommending that water source with onsite characteristics and non-traditional features act as water supply sources or backup sources. Karst water, rainwater catchment utilization, and municipal wastewater reuse are singled out as promising ways for water supply in the future. Then different water supply systems are classified for various types of towns to employ. Finally, framework for regional water supply is advised strongly for the three types of small towns with the consideration of respective economic level. Thus, feasible, stable, effective and cost-saving water supply systems are setting up for decision making.