When drinking water flows into the water distribution network from a reservoir, it is exposed to the risk of accidental or deliberate contamination. Serious drinking water pollution events can endanger public health, bring about economic losses, and be detrimental to social stability. Therefore, it is obviously crucial to research the water contamination source identification problem, for which scholars have made considerable efforts and achieved many advances. This paper provides a comprehensive review of this problem. Firstly, some basic theoretical knowledge of the problem is introduced, including the water distribution network, sensor system, and simulation model. Then, this paper puts forward a new classification method to classify water contamination source identification methods into three categories according to the algorithms or methods used: solutions with traditional methods, heuristic methods, and machine learning methods. This paper focuses on the new approaches proposed in the past 5 years and summarizes their main work and technical challenges. Lastly, this paper suggests the future development directions of this problem.