This paper proposes a short-term water demand forecasting algorithm based on kalman filtering with data mining for sustainable water supply and effective energy saving. The proposed algorithm utilizes a mining method of water supply data and a decision tree method with special days like Chuseok. And the parameters of MLAR (Multi Linear Auto Regression) model are estimated by Kalman filtering algorithm. Thus, we can achieve the practicality of the proposed forecasting algorithm through the good results applied to actual operation data.