In the Era of Globalization, Urbanization and Industrialization there is a major task of Public utility to fulfill the requirement of the people quatitavely and qualititatively in developing countries like India. In India till now performance assessment and efficiency evaluation of public utility (water supply and sanitation utility) by use of benchmarking methodologies, not in a regular practice. Benchmarking gives a clear idea about the significance of indicators which affect the efficiency of a utility directly or indirectly to the regulators, stakeholders and law makers. By applying Stochastic production function on Water utility of urban cities in the State of Madhya Pradesh we get the results that Municipality of Bhopal, Indore, Guna,  Jabalpur, Satna, Khargone, Neemuch and Vidisha urban city performed better and scored highest estimated efficiencies while evaluation is based on SFA production function.