Climate change, severe droughts, population growth, demand increase, and poor management during the recent decades have further stressed the scarce freshwater resources worldwide and resulted in severe water shortages in many regions. The water utilities address the water shortage by providing alternative source of water, augment the supplied water, supply intermittently, and even bulk water delivery under severe water shortage conditions. On the other hand, many households store water in building storage tanks to cope with insufficient delivery of potable water due to frequent interruptions. All these practices could pose crucial risks to the chemical and microbiological quality of the water. However, consistent monitoring and implementation of mitigation strategies could lower the potential risks associated with these practices. It is critical to identify the potential hazards resulting from the alternative water supplies and distribution practices to develop temporary and long-term monitoring and mitigation plans and reduce the microbial and chemical contamination of potable water delivered to the consumers. This paper provides a holistic review of the significant hazards associated with the practices employed by the water utilities and water consumers to alleviate the potable water shortage and discusses the required monitoring and mitigation practices.