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Water-sensitive design (WSD) is created to manage water sensitivity, such as rainwater management and water supply. Manado City is strategically located in North Sulawesi Province, Indonesia, which is growing rapidly but has slum areas and is prone to flooding. Slums do not meet standards, including water management. The application of WSD to residential areas in urban areas affects the utilization of rainwater flows and the availability of alternative water sources. Previous studies did not look at the potential for implementing WSD to increase the settlement quality in slum areas. This study aims to identify the potential for implementing WSD in the urban slum area of Manado city by considering the existing situation and conditions. Furthermore, this study reviews the physical, non-physical, and supporting aspects for the potential implementation. Three locations of Manado city slums were reviewed as case studies. For data collection, this study uses the interview method through structured questionnaires, area observations, and secondary data. The physical aspect reviews the rainwater drainage system fed by greywater and the water supply including groundwater and refilled water. The non-physical aspect reviews incomes, ownership of houses, and limited land. The study results show that the application of WSD is very potential given the location conditions, but some challenges need to be considered according to the characteristics of the location. [ABSTRACT FROM AUTHOR]