WATER RESOURES ACT, 2049 (1992)
Date of Authentication and publication
17 Pausa 2049 (17 December, 1992)

AN ACT MADE TO PROVIDE FOR THE MANAGEMENT OF
WATER RESOURCES
PREAMBLE :WHEREAS, it is expedient to make arrangements for the rational
utilization, conservation, management and development of the water resources that areavailable in the Nepal in the form of surface water, underground water or in whatsoever
form, andWhereas , it is expedient to make timely legal arrangements for determining beneficial
uses of water resources, preventing environmental and other hazardous effects thereof andalso for keeping water resources free from pollution.
NOW, THEREFORE, be it enacted by the Parliament in twenty first year of the reign ofHIS MAJESTY’S KING BIRENDRA BIR BIKRAM SHAH DEV.

1.

Short Title and Commencement: (1) This Act may be called “WaterResources Act, 2049 (1992).”(2)This Act shall come into force on such date as Government of Nepal

may, by a notification published in the Nepal Gazette, appoint.

2.

Definition: in this Act ,Unless the subject or the context otherwise requires :(a)“Water Resources” means the water that is available in Nepal in the formof surface water, underground water or in whatsoever form.

(b)“Beneficial Uses” means rational uses of the water resources within theavailable means and resources.

(c)“License” means a person or a corporate body which has obtained thelicense to use water resources pursuant to Section 8.

(d)“Users Association” means Water Users Association constituted pursuant toSection 5.

(e)“Prescribed” or “as prescribed” means prescribed or as prescribed in theRules made under this Act.

3.

Ownership of Water Resources: The ownership of the water resources
available in Nepal shall be vested in Nepal.

4.

Utilization of Water Resources: (1) No person shall be entitled to utilize thewater resources without obtaining a license under this Act.
(2)

Notwithstanding anything written in Sub-section (1), no license shallbe required for the following uses of water resources.
(a)

For one’s own drinking and other domestic use on an individual orcollective basis,(b)

For the irrigation of one’s own land on an individual or collectivebasis,(c)

For the purpose of running water-mill or water-grinder as cottageindustry,(d)

For the use of boat on personal basis for local transportation,(e)

For the use, as prescribed, of the water resources confined to a landby the owner of such land.

(3) A person or a corporate body making use of water resources shall makeits beneficial use without causing damage to other.

5Constitution of Water Users Association: (1) Persons willing to make use ofwater resources for collective benefits on an institutional basis may form a Water
Users Association as prescribed.

(2) The Water Users Association, constituted pursuant to Sub-section (1)shall be registered as prescribed before the prescribed officer or authority.

6.

Water users Association to be a Corporate Body: (1) Users Association
shall be an autonomous and corporate body having perpetual succession.
(2)

Users Association shall have a separate seal of its own for thepurpose of its all business.
(3)

Users Association may, as a person, have the right to acquire, enjoy,sell, dispose or arrange by any means of movable and immovable property.
(4)

7.

Users Association may sue as a person or be sued against it.

Priority Order on the Utilization of Water Resources: (1) While utilizing
water resources following priority order shall, in general, be followed:(a)Drinking water and domestic users;(b)

Irrigation;(c)Agricultural uses such as animal husbandry and fisheries;(d)Hydroelectricity;(e)

Cottage Industry, industrial enterprises and mining uses,(f)Navigation;(g)Recreational uses;(h)Other uses.

(2)

If a dispute arises while utilizing water resources, the prescribedcommittee shall, on the basis of priority order as set out in Sub-section (1), thebeneficial use or misuse made of the water resources in accordance with Subsection (3) of Section 4 and also by conducting other necessary enquiries, decide as
to whether or not or in what manner such use could be made.

(3)The decision made by the prescribed committee pursuant to Sub-section (2) shall be valid to all concerned.
(4)

The procedure of the committee, as prescribed pursuant to Sub-section (2), while deciding on matters mentioned on that Sub-section, shall be asprescribed.

8.

Provisions of License: (1) A person or a corporate body, who desires to conduct
survey or to utilize water resources, shall be required to submit an application to
the prescribed officer or authority along with the economic, technical andenvironmental study report and with other prescribed particulars.
Provided that such study report shall not be required to be appended while
applying for the license to conduct the survey of water resources.
(2)

On receipt of an application pursuant to Sub-section (1), theprescribed officer or authority shall conduct or cause to conduct necessary
enquiries and issue a license to the application by prescribing necessary terms
according to the format as prescribed within 30 days of the receipt of suchapplication in the case of license for conducting survey of water resources andwithin 120 days in the case of license for the utilization of water resources inaccordance with the priority order as set out in Sub-section (1) of Section 7.
(3)

A person or a corporate body, who is utilizing water resources prior

to the commencement of this Act, shall be required to submit an application alongwith the prescribed particulars to the prescribed officer or authority within one year
from the date of the commencement of this Act except other wise provided in Subsection (2) of Section 4.
(4)

One receipt of an application pursuant to Sub-section (3), theprescribed officer or authority, after conducting necessary enquiries, shall issue alicense according to the format as prescribed, within 60 days of the receipt suchapplication.

(5)The licensee shall have to pay charge or annual fee for utilizing

water resources as prescribed to Government of Nepal.
(6)

In case a licensee wishes to sell or otherwise transfer its license, it

shall be required to obtain the approval from the prescribed officer or authority.

9.

Utilization of Water Resources for Hydro-electricity: (1) Notwithstanding
anything written in Section 8, the license relating to the survey of water resources
and its utilization for the generation of hydro-electricity shall be governed by theprevailing laws.
(2)

With regard to the generation of hydro-electricity, other mattersrelating to the utilization of water resources shall be in accordance with this Act.

10.

Government of Nepal may Utilize or Develop Water Resources: (1)Nothing mentioned in this Act shall be deemed to have prevented Government ofNepal from utilizing or developing water resources on its own.
(2)

Government of Nepal may, for purpose or extensive public uses,acquire and develop water resources and the land, building, equipment andstructures relating thereto utilized by any person under this Act.

Explanation: For the purpose of this Act, “Extensive Public Use” means the use
which does not cause substantial adverse effect to the existing use and serves
benefits to larger population that the existing population benefited from it.
(3)

Government of Nepal shall pay compensation as prescribed, to theconcerned person for the land, building, equipment or structures relating to theutilization of the water resources taken over by it pursuant to Sub-section (2).
(4)

The amount of compensation payable pursuant to Sub-section (3)shall be determined on the basis of the current price (after deducting, wear, tearand depreciation) of the land, building, equipment and structures owned byGovernment of Nepal.

11.

Water Resources Development Project may be Turned-over:(1)

Government of Nepal may, on terms and conditions as arenecessary, turn-over to the users association any water resources project developed
pursuant to Sub-section (1) or (2) of Section 10 after its completion.
(2)

The concerned users association shall have the ownership over the

project turned-over to it pursuant to Sub-section (1) and the concerned users
association shall operate such project as if it has got licensee under this Act.

12.

Contract may be Entered into for the Utilization of Water Resources:
Notwithstanding anything written elsewhere in this a Act, Government of Nepal
may, subject to the prevailing law, enter into a contract with any national orForeign company, corporate body or person to develop or cause to develop, utilize
and extend the services of any water resources on such terms and conditions asmentioned in such contract.

13.

Power to Fix the Terms and Conditions of the Use of Service and toRealize the Service Charge: (1) The licensee may make available services
generated out of the use of water resources developed on its own to any otherperson on the basis of mutual terms and conditions and realize the charge inconsideration of such services rendered to them.
(2)

In case where the services generated out of the use of water resources

developed by Government of Nepal is made available to any other person, theservice charge may be fixed as prescribed, and may be realized in consideration ofservices rendered to them.

14.

Services may be Stopped: The services to such person may be stopped who, isin default of payment of the charge for the utilization of services or utilizes theservices unauthoritatively or misuses the services or acts in contravention of theterms and conditions.

15.

To Enter Into Other’s Premises: If Government of Nepal or the licensee
requires to enter into anyone’s premises in connection with the survey orutilization of water resources, the employee ofGovernment of Nepal or thelicensee may enter into such premises only after giving a prior notice to theconcerned person. In case any loss or damage is caused due to such entry,
Government of Nepal or the Licensee shall pay compensation, prescribed for suchloss or damage.
Provided that such employee may, without giving prior notice, enter into theconcerned premises to rescue from any accident or if there is a reasonable groundto suspect that water resources is being unauthoritatively used or misused in suchpremises.

16.

Utilization and Acquisition of Other's Land and House: (1) If it is requiredthat the land or house of any person be used or acquired for the purpose of
performing any of the following function, the licensee may submit an application
to Government of Nepal :(a)

For the construction of a dam or barrage,(b)

For the construction of canal, ditch or tunnel,(c)

For the construction of a water tank on the surface or underground or forlaying pipe,(d)

For the construction of ponds or installation of a water distributing centre,(e)

For performing any other necessary work related to the development ofwater resources.
(2)

On receipt of an application pursuant to Sub-section (1), Governmentof Nepal may, after conducting necessary enquires into the matter, make available
such land or house in the same manner as it makes available to any corporate bodyunder the prevailing laws.

(3)If a construction work relating to the development and utilization ofwater resources has been performed by Government of Nepal or a licensee,
Government of Nepal may prohibit to use the premises of a house or land locatedin the area where such construction work is performed or the premises of a houseor land located in the prescribed distance from such place of construction by anyother person for any specified purpose. Government of Nepal or the licensee shall
pay compensation, as prescribed, to the concerned person for such damage or loss
caused due to such prohibition.

17.

Security of Structure Related to the Utilization of Water Resources: (1)Government of Nepal may make necessary arrangement for the security of any
structure related to the utilization of water resources, on the request of licensee orby itself, if it deems it necessary to provide such security.
(2)

If security arrangement is made pursuant to subsection (1) on therequest of the licensee, all the expenses incurred for such security shall be borne by
the licensee.

18.

Fixing of Quality Standard of Water Resources: (1) Government of Nepal
may, by a notification published in the Nepal Gazette, fix the necessary quality
standard of water resources for various uses.
(2)

While making use of water resources, the quality standard asprescribed pursuant to Sub-section (1) shall be maintained.

19.

Water Resources not to be Polluted: (1) Government of Nepal may, by a
notification published in the Nepal Gazette, prescribe the pollution tolerance limit
for water resources.
(2)

No one shall pollute water resource by way of using or putting any

litter, industrial wastes, poison, chemical or toxicant to the effect that the pollution
tolerance limit of the water resource as prescribed pursuant to Sub-section (1) isexceeded.

(3)The prescribed officer may, as required, examine or cause to

examine to determine as to whether or not the water resource has been polluted or
the quality standard as prescribed pursuant to Sub-section (1) of Section 18 has
been maintained.

20.

Not to Cause Substantial Adverse Effect on Environment: While utilizing
water resources, it shall be done so in such a manner that no substantial adverse
effect be made on environment by way of soil erosion, flood, landslide or similar
other cause.

21.

License may be Cancelled: (1) If the licensee performs any act contrary to thisAct or Rules made under this act, the prescribed officer may issue an order to theconcerned licensee by prescribing necessary improvements to be made on suchactivity within the specified period.
(2)

If the licensee makes no improvement within the prescribed period

pursuant to Sub-section (1), the prescribed officer may cancel the license of such
person.
(3)

Prior to the cancellation of license pursuant to Sub-section (2), theprescribed officer shall give the licensee a reasonable opportunity to explain hisinnocence.

22.

Penalties: (1) The prescribed officer may impose a fine upto an amount of five
thousand rupees to any person who acts in contravention of this Act or Rules madeunder this Act and realize compensation also for such damage from such person if
damage is caused to anybody due to such act.
(2)

The prescribed, officer may impose a fine up to five thousand rupees

and cause to close such activity if any person utilize the water resources withoutobtaining the license which is required to be obtained under this act or withoutobserving the terms and condition set forth in the license.

(3)If a person steals, misuses or uses unauthoritatively the services

developed out of the water resources pursuant to this Act, such person may bepunished with a fine at par with the value of the services and the value of suchservices shall be realized from such person by the prescribed officer.
(4)

If any person causes adverse effect, demolishes, destroys or causes

harm otherwise with mala fide intention to any source of drinking water, dam,canal or any structure related to the utilization of water resources or any otherstructure related to the same or induces to do the said acts or attempt to do so, such
person may be punished with a fine at par with the value of the damages or withimprisonment up to ten years or both realizing the value of such damages fromsuch person.

23.

Appeal: Any person who is not satisfied on the decision of the compensation
pursuant to Section 10, 15, or 16 or the decision of the cancellation of license
pursuant to Section 21 or an order of the punishment issued by the prescribed
officer pursuant to Sub-section (1), (2) or (3) or Section 22, an appeal against suchdecision or order may lie in an appellate court within a period of thirty five days.

24.

Power to Make Rules: (1) Government of Nepal may frame Rules in order tocarry out the objectives of this Act.
(2)

Without prejudice to the generality of the powers conferred by Sub-section (1), Government of Nepal may frame Rules, in particular, on the following
subjects:(a)Matters relating to drinking water, irrigation, navigation, industrial
and recreational uses and matters related to similar uses of waterresources.

(b)

Matters relating to conservation of water resources and the control offlood and soil erosion.

(c)Matters relating to the conservation of environment.

(d)Matters relating to fee, charges etc. payable to Government of Nepal
for the utilization of any service related to water resources.

(e)

Matters relating to the pollution prevention of water resources.

(f)

Methods of various uses of water resources.

(g)

Matters relating to the setting of standards of services, generated
from the utilization of water resources.

(h)Matters relating to accident caused by the utilization of water
resources and enquiries into such matter and matters relating tocompensation thereto.

(i)

Matters relating to users association and other matters related tousers including protection and facilities to be provided to the users.

(j)

Other necessary matters relating to the development and utilizationof the water resources.

25.

Repeal and Savings: (1) The Canal, Electricity and Related Water Resources
Act, 2024 is hereby repealed.
(2)

Any act performed under the Canal, Electricity and Related Water

Resources Act, 2024 and Rules and order made under the said Act prior to thecommencement of this Act shall be deemed to have been performed under this Act.