Given the recent advances in remote sensing analytics, cloud computing, and machine learning, it is imperative to evaluate capabilities of remote sensing for water quality monitoring in the context of water resources management and decision-making. The objectives of this review were to analyze recent advances in water quality remote sensing and determine limitations of current systems, estimation methods, and suggest future improvements. To that end, we collected over 200 sets of water quality data including blue-green algae phycocyanin (BGA-PC), chlorophyll-a (Chl-a), dissolved oxygen (DO), specific conductivity (SC), fluorescent dissolved organic matter (fDOM), turbidity , and pollution-sediments from 2016 to 2018. The water quality data, generated from laboratory analysis of grab samples and in-situ real-time monitoring sensors distributed in eight lakes and rivers in Midwestern United States, were paired with synchronous proximal spectra, tripod-mounted hyperspectral imagery, and satellite data. The results showed that both proximal and satellite-based sensors have great potential to provide accurate estimate of optically active parameters, and remote sensing of non-optically active parameters may be indirectly estimated but still remains a challenge. Data-driven empirical approaches, i.e., deep learning outperformed the other competing methods, providing promising possibility for operational use of remote sensing in water quality monitoring and decision-making. As the first-time review of deep neural networks for water quality estimation, the paper concludes that anomaly detection utilizing multi-sensor data fusion and virtual constellation in cloud-computing is the most promising means for predicting impending water pollution outbreaks such as algal blooms.