The present study is designed to identify determinants of choice of drinking water supply by the households in Punjab province of Pakistan. The multinomial logit model is used for the analysis of choice of water source using the household integrated economic survey for 2010-11. Our findings suggest that family size and numbers of rooms in a dwelling have a strong effect on choice of drinking water source. Location of the respondents (rural/urban) is highly significant and has a positive effect on the choice of drinking water source, whereas mode of transportation has a significant effect but a negative relationship with ownership of hand and motor pumps.