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If they're making 10x as much as a farm worker, including benefits, then doesn't that mean they're already making a living wage? A minimum wage probably wouldn't affect them significantly in that case.

But is the article wrong then? Why would someone with 10x the income of a farm worker villager live in a shanty town without water?

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because that's living in big cities unfortunately. Taking Bombay as an example - where in some areas the cost per square foot of an apartment is easily as high as 1600 USD (100000 INR) - even a shanty is a luxury for many. Also you have to realize - a village in india != a village in the developed world. Likely his shanty has tv, water for a few hours a day that fill up an overhead tank and has a doctor nearby - all or some of which may not be true in his village.

What is life in the village like? I'll admit my first reaction upon reading this is to think "that doesn't sound very pleasant" but maybe it's a lot better relative to where this person came from. Why are people moving to the city?

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