The Prepaid Water meter is a technology for prepaid billing of water along with sufficient monitoring of the water meter readings mechanically from a outside place without any human intervention. This system gives fast and accurate billing of water as well as prevents any abuse of it. In this paper, a technique having adequate security support, for prepaid charges of water using Short Message Service (SMS) has been illustrated. Existing Global System for Mobile communications (GSM) networks have been used for transmitting and receiving SMS. A water meter is used for measuring the volume of water used. This is basically a control mechanism that only allows usage of water only. A valve is designed such that is electrically operated. Valve is used to regulate the water flow for the consumer. A sensing system is also generates an equivalent voltage related to the amount of water used by the consumer.