The study examines the use of Data Envelopment Analysis (DEA) for the estimation of the well being from drinking water using `commodities and capabilities' approach. DEA uses the general purpose linear programme version of the input oriented multi-input multi-output model for the estimation taking state as the decision-making unit. The transformation efficiency of the water characteristics into achieved capabilities (free from morbidity rates of water borne diseases) shows that Punjab has the least efficiency while Kerala and Orissa as the Paretoefficient Peer states. The major reason for the input use efficiency in Kerala may be due to the cultural practice of boiling drinking water before consumption. In the case of Orissa, it can be attributed to better hygienic water handling practices. One such indicator, taking water from the storage containers using vessels with handles, is very high among the households in Orissa.