Why do they build water towers tall, why not just a big ground level tank?

The purpose of a tower is to create pressure within the system. Ground tanks are generally used as simple storage until pumped up to a tower. Natural pressure, gravity, is necessary to keep water pressure balanced in homes.

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Its to stop contamination and there is no drainage involved
A small vicinity can maintain a pressurized water system without electricity for a small amount of time. The gravity adds pressure to the system naturally without the need for a pump. Plus, it is a great way for a town to put their name up on. :)
Water is utmost necessity in daily life for twentyfour hours .The reliability of water supply, even in absence of electricity supply , is ensured by water towers which ground level tanks can not do .
Water towers are generally built for one of two reasons:
- Reserve Water
- Fire Protection

Towers serve as a repository for reserve water in most town applications. If everyone in the town were to run water at the same time, the town would have to have pumps large enough to supply that water. They would also have to have a source great enough to supply that volume at one time. If there is a reservoir - tower, tank, or dug reservoir - the supply demand can be spread out as smaller pumps could run for longer durations to supply the same amount of water.

This also helps in communities because they can fill the tower overnight and use gravity to supply the majority of the town during the day. Running the large pumps at night can generate a savings as electric companies will often provide price cuts if large demands are changed to night time.

The other main purpose of water towers is for fire protection. Water at elevation does not require electricity to flow to the fire. If a building (typically a large shopping mall, mill, etc) is protected by a sprinkler system that is fed by pumps, the sprinklers will only work if the electricity is on. With a water tower, if there is a power outage or the fire were to sever the connection to the power supply, there will still be water supplied for the sprinkler system.
They're used to maintain the pressure on a water supply system during high water usage.
A ground level tank say 20 feet high, when full will provide a pressure of about 9 pounds per square inch (9psi).

A water tower 100 feet high will provide a pressure of about 43 psi.

The tower is refilled during low water usage periods (mainly at night).
Basically, a water tower is high to store water pressure. It takes a certain pump pressure to defeat gravity and raise water up the tower. The water is then available back at ground level at that same pressure, again due to gravity.

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