Non-surfactant water-in-diesel emulsion fuel (NWD) is an alternative fuel that has the potential to reduce major exhaust emissions while simultaneously improving the combustion performance of a diesel engine. NWD comprises of diesel fuel and water (about 5% in volume) without any additional surfactants. This emulsion fuel is produced through an in-line mixing system that is installed very close to the diesel engine. This study focuses mainly on the performance and emission of diesel engine fuelled with NWD made from different water sources. The engine used in this study is a direct injection diesel engine with loads varying from 1 to 4 kW. The result shows that NWD made from tap water helps the engine to reduce nitrogen oxide (NOx) by 32%. Rainwater reduced it by 29% and seawater by 19%. In addition, all NWDs show significant improvements in engine performance as compared to diesel fuel, especially in the specific fuel consumption that indicates an average reduction of 6%. It is observed that all NWDs show compelling positive effects on engine performance, which is caused by the optimum water droplet size inside NWD.