Fulfilling the demand of clean potable water to the general public has long been a challenging task in most developing countries due to various reasons. Large-scale membrane water treatment systems have proven to be successful in many advanced countries in the past two decades. This paves the way for developing countries to study the feasibility and adopt the utilization of membrane technology in water treatment. There are still many challenges to overcome, particularly on the much higher capital and operational cost of membrane technology compared to the conventional water treatment system. This review aims to delve into the progress of membrane technology for water treatment systems, particularly in developing countries. It first concentrates on membrane classification and its application in water treatment, including membrane technology progress for large-scale water treatment systems. Then, the fouling issue and ways to mitigate the fouling will be discussed. The feasibility of membrane technologies in developing countries was then evaluated, followed by a discussion on the challenges and opportunities of the membrane technology implementation. Finally, the current trend of membrane research was highlighted to address future perspectives of the membrane technologies for clean water production.