This document presents a literature review on rainwater harvesting in Sydney, Australia, addressing water scarcity issues and evaluating rainwater harvesting systems (RWHS) as a sustainable solution. It covers the background of water scarcity, the advantages and disadvantages of RWHS, factors affecting its adoption, and design considerations. The review also examines rainwater harvesting practices in different global cities, relevant research in Australia and specifically in Sydney, and introduces the e-Tank daily water balance model. The study highlights the importance of using actual rainfall and water consumption data for accurate RWHS design, aiming to overcome the limitations of previous studies that relied on historical data. The research objectives include investigating climate variability and water demand trends, estimating rainwater collection potential, analyzing feasibility and reliability, determining the optimal design of RWHS, and calculating the payback period for such systems in Sydney.