Water quality and shortage is one of the most severe problems which jeopardize the lives of every living entity. To check the impact of drinking water on children‘s health, the current study was conducted in the water shortage area of Cholistan, Punjab, Pakistan. The focus was given to compare the impact of drinking water sources from Toba with well. In this connection primary data was collected through well-prepared, pretested questioners from district Rahim Yar Khan‘s villages from 120 pastorals at their premises. Logistic regression mode was adopted to capture determinants of children health of household‘s characteristics having and without health problems. Study confirmed the hypotheses that income, family size, drinking water sources, awareness about waterborne diseases, and adoption of water protection measures have impact on children‘s health. Pastoral‘s Willingness to Pay (WTP) for safe and clean drinking water was also captured through Logit Model. The result indicates that household‘s income, children health and awareness about waterborne diseases have significant impact on wiliness to pay for clean and safe drinking water. Government and other aid agencies should come forward to implement existing and new drinking water schemes, creates awareness about preventive measures of water borne diseases, provision of mobile dispensaries and schools. Supervisor:- Dr. Usman Mustafa