Water scarcity has emerged as a critical global challenge in the Anthropocene, a period marked by significant human impact on the planet's hydrological systems. This article examines the concept of hydro-hegemony, which highlights power disparities in water governance, with a particular focus on the Global South. Neoliberal frameworks, characterized by market-driven policies and resource commodification, have exacerbated these disparities, often prioritizing profit over equitable resource distribution. For instance, transboundary water disputes like the Nile River conflict between Ethiopia and Egypt, as well as urban challenges in Mumbai's "Water for All" initiative, underscore how historical and systemic inequities shape water governance outcomes. This article integrates case studies and empirical data to illustrate how neoliberal policies perpetuate marginalization, particularly among vulnerable communities, by concentrating decision-making power in the hands of nation-states and corporate actors. By exploring the intersection of neoliberalism, water governance, and social movements advocating for change, the study underscores the far-reaching implications of these dynamics on socio-economic and environmental systems. It argues that the current governance frameworks not only intensify existing inequalities but also hinder sustainable development and environmental justice efforts. Through a critical evaluation of alternative governance approaches, the paper proposes participatory and locally informed strategies that prioritize equity, community empowerment, and resilience in addressing water scarcity.