Access to water resources is one of the demanding issues of the 21st century worldwide. As worldwide population increases, the demand for water is seriously increased. With the increasing demand, water quality is also under growing stress which requires better supply chain management (SCM) by adopting strategic management practices. Therefore, the objective of this study is to examine the role of supply chain strategic management in customer satisfaction and the performance of the water supply company in Makassar, Indonesia. In this study, service quality and drinking water quality were taken as the strategic management activities. Employees of water supply companies were selected to collect the necessary data. Questionnaires survey was used to collect the necessary data from employees. Three hundred (300) questionnaires were distributed among the employees of water supply companies of Makassar, Indonesia. It was found that strategic management practices were vital to enhance water supply chain. Moreover, it was concluded that water supply companies of Makassar needed better supply chain activities to boost performance. Better supply chain implementation was the key to customer satisfaction and the performance of the company.