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Management of coalbed methane (CBM)-produced water is a crucial part of the water-energy nexus, especially as CBM is projected to play a key role as a bridge fuel in major economies. In this paper, we consider one management technique, i.e., desalination of CBM-produced water to generate potable water. We discuss a confluence of geographic, sociotechnical, regulatory, and other circumstances that could make this concept viable for select coal-bearing regions. Having said that, for maximizing benefits, it is prudent to take a synergistic view targeting multiple objectives (water access, health, environmental impacts, and ease of waste management). Thus, we make design recommendations and suggest a system-evaluation framework for making sustainable decisions related to produced-to-potable water systems. For instance, a key question is whether such systems should be centralized or decentralizedand this paper highlights crucial tradeoffs that are present in both the cases.