This paper addresses the problem of selecting the most sustainable stormwater management alternative in developing countries in a dense urban context. Firstly, suitable Low Impact Development (LID) stormwater management measures for dense urban areas in developing countries were identified based on critical review of literature. Alternatives have been formulated as varying percentages (degree of adoption) of these suitable measures to manage the stormwater sustainably. Further, a novel decision-making framework is developed which generates the hierarchy for selection of the most sustainable stormwater management alternative. Four main criteria (technical, economic, environmental and social) comprising three quantitative and eight qualitative indicators have been used for evaluating seven alternatives. The regional and local societal priorities are captured through criteria-weightings and are translated into a decision-making methodology. Experts' opinions have been included using Analytical Hierarchy Process (AHP). One of the most widely used Multiple Attribute Decision-Making (MADM) method, TOPSIS, is used to rank the alternatives and to identify the most sustainable alternatives. Various scenarios to represent different stakeholders' perspectives have been articulated. Alternative with medium level of cost implication and satisfactory level of performance is chosen by the decision making method in most of the scenarios. The proposed decision making approach can be used for selecting sustainable stormwater management options in densely populated areas of developing countries.