That, I think, is a myth. It sounds logical, but when you look at actual population demographics in history, there's no simple pattern to follow like Malthus imagined - no ceiling that people hit and then sit at. Rather, prosperity walks a complicated balance between what is being exploited and when and how; we see wild differences in quality of life even between places that, on the face of it, seem very similar in base potential.
Ultimately, how many people you live next to is less important than how you are all managing your lifestyle. Sure, we can all think of cases where dense urbanization had disastrous effects, but then many of the nicest places to live on the planet are also dense urban areas. We can all imagine a bucolic rolling countryside where everyone provides happily for themselves, but then some of the worst places in the world to live right now are thinly populated, rich farmland that nevertheless got in the way of politics or pollution. There's no "magic number", we can adjust both population and productivity when needed, or change our strategy altogether. Only imagination and political willpower are true constraints in our ability to live on a given landscape.
Well, those things plus the more absolute limit of available water. But we're not near any kind of limit on that front, at least not as a planet. Within geopolitical constraints such as national borders, yes. But that has to do more with our inability to adapt to changing circumstances without violence than any global shortage of water. That remains constant over time, whatever its current, rapidly changing, global distribution.