Excited youngsters grabbed an early start in the celebrations, followed by youths and the elders who joined in later.
Chief Minister Prithviraj Chavan and Mumai Police urged people to play a safe holi.
Keeping in mind concerns over water wastage, large crowds of Mumbaikars and people in Thane moved to the coastal areas and played holi on beaches.
Film and television stars have also appealed to people to celebrate a safe holi without using dangerous colours.
Police have warned that anybody caught throwing liquid filled balloons will be jailed for 15 days.
The BrihanMumbai Municipal Corporation has threatened one year jail for those cutting trees to make bonfires.