This study devised a practical solution to mitigate urban inundation and artificial recharge of groundwater using recharge wells which is the most viable surface runoff rainwater harvesting (RWH) technique in urban areas. The Rainwater Harvesting Pilot Project at Gaddafi Stadium Lahore was established to deal with urban flooding, artificial recharge of groundwater, and to avoid the mixing of rainwater in municipal sewerage. The study showed that Lahore city has great RWH potential from critical ponding roads that can be utilized to recharge the Lahore aquifer. With that ratio of recharge, the groundwater level can rise to 3.54 ft after every monsoon period if the same recharge wells structure are used, which is a key to groundwater sustainability in Lahore city. Moreover, the maximum recharging capacity of wells was 29.32 m3/h with satisfactory performance. Both recharge wells cleared the ponding volume within 3 to 3.5 h after the rainfall stopped. The filter media performance was also favorable with 25%−30% removal of contamination. All the water quality parameters were within the permissible limit against prescribed standards except coliform count that indicated the presence of sewage. In such a case the mixing of charcoal is recommended to shut up the coliform signals. This study identified that RWH using recharge wells is an alternative freshwater supply source for sustainable development of Lahore city and this technique should be the part of Master Planning and Policy Decision of Lahore as a suggestion.