Municipal water distribution and quality management systems are responsible for supplying safe and sufficient water to urban populations through extensive pipeline networks. However, existing systems mostly rely on manual monitoring and periodic testing, which leads to delayed detection of leakages, contamination, and uneven water distribution. These drawbacks result in water loss, poor quality control, and inefficient management of municipal water resources. Therefore, this project proposes Smart IoT-Based Municipal Water Distribution and Quality Monitoring System is designed to ensure efficient water supply management and continuous monitoring of water quality in municipal applications. The proposed system integrates multiple sensors such as pH, TDS, turbidity, water flow, and ultrasonic sensors to measure critical water quality and distribution parameters in real time. An Arduino Uno microcontroller acts as the central processing unit, collecting sensor data and displaying key values on an LCD screen for local monitoring. For remote supervision, a Node MCU Wi-Fi module transmits the collected data to an IoT cloud platform, enabling real-time visualization, alerts, and control actions. Based on predefined threshold conditions, the system automatically controls water flow using a relay-driven solenoid valve and DC pump motor, ensuring safe and efficient water distribution. An ESP32 camera module provides object detection and visual monitoring to identify unauthorized activities or anomalies in the water infrastructure. The use of dual power supplies (+5V and +12V) ensures reliable operation of both sensing and actuation units. Overall, this system reduces water wastage, enables early detection of contamination, and improves operational efficiency by combining automation, real-time monitoring, and IoT-based control, making it suitable for smart city and municipal water management applications.