Abstract: The present poor drinking water services and sanitation problems have triggered the need to look for a better management strategy under the current water reform in Nigeria. In order to suggest a feasible option, the study examines the present water management structure in Nigeria. Findings indicate that there exist no water management structures at a lower (or sub-basin) level; there exists no water management platform that incorporates the non-government water stakeholders in the present river basin-based water management structure in Nigeria and there is no involvement of present basin management authority in sanitation and drinking water service provisions. To alleviate these problems, the study suggests; one, the rationalization of the present 12 river basin management framework into four along the four natural hydrographical areas in Nigeria, two, the creation of sub-basin management structures within the four natural hydrographical areas, three, the inclusion of key non-government water stakeholders in river basin and sub-basin management platforms and four, the devolution of drinking water and sanitation service provisions to the basin management organizations. The study closes with a set of policy recommendations that could encourage the operation of this alternative water management structure in Nigeria.