We are only able to use 1/4 of the water on Earth because most of the water on earth is marine or salt water.
Truly, the earth is made up of a very large percentage of water. In fact, there is only a small fraction of land that is available on earth.
However, 3/4 of this water supply is marine or salt water. Salt water is unfit for drinking, neither can it be used for domestic or industrial use.
The implication of this is that we have only 1/4 of the water supply available to us as fresh water which can be used for drinking, industrial and domestic purposes.
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