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I'm installing overhead water supply system, which is to be installed on the ceiling. I want to have 1000 litre capacity. The water heater that I use, requires some pressure at the inlet pipe. So will two smaller tanks(500 Litre each), connected at bottom provide more pressure than single 1000 litre tank?

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Water pressure increases with depth, not volume. For tanks open to atmosphere, such as cisterns, the higher the top of the water level is above the heater, the greater the pressure will be. Water pressure will increase about 1.47 pounds per square inch for each meter of height. If you use sealed, pressurized tanks you can set the pressure at whatever you need.

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