Spatial as well as spectral resolution has a very important role to play in water resource management. It was a challenge to explore the groundwater and rainwater harvesting sites in the Aravalli Quartzite-Granite-Pegmatite Precambrian terrain of Delhi, India. Use of only panchromatic sensor data of IRS-1D satellite with 5.8-meter spatial resolution has the potential to infer lineaments and faults in this hard rock area. It is essential to identify the location of interconnected lineaments below buried pediment plains in the hard rock area for targeting sub-surface water resources. Linear Image Self Scanning sensor data of the same satellite with 23.5-meter resolution when merged with the panchromatic data has produced very good results in delineation of interconnected lineaments over buried pediment plains as vegetation anomaly. These specific locations of vegetation anomaly were detected as dark red patches in various hard rock areas of Delhi. Field investigation was carried out on these patches by resistivity and magnetic survey in parts of Jawaharlal Nehru University (JNU), Indira Gandhi national Open University, Research and Referral Hospital and Humayuns Tomb areas. Drilling was carried out in four locations of JNU that proved to be the most potential site with ground water discharge ranging from 20,000 to 30,000 liters per hour with 2 to 4 meters draw down. Further the impact of urbanization on groundwater recharging in the terrain was studied by generating Normalized difference Vegetation Index (NDVI) map which was possible to generate by using the LISS-III sensor of IRS-1D satellite. Selection of suitable sensors has definitely a cutting edge on natural resource exploration and management including groundwater.