Water Supply Management Board Act, 2006

7. Constitution of Kathmandu Valley Drinking Water Management Board: (1) Notwithstanding anything contained in Section 3, the Government of Nepal may constitute a separate Kathmandu Valley Drinking Water Management Board to operate or cause to operate drinking water services and sanitation services in the municipal areas within the Kathmandu Valley in a regular, systematic and effective manner.

(2) If at the time of constituting the Board under Subsection (1), service is also being operated from the service systems of municipalities in the Kathmandu Valley to any Amended by Some Nepal Acts Amendment Act, 2072.rural municipality or part thereof, such Amended by Some Nepal Acts Amendment Act, 2072.rural municipality or part thereof may also be included within the geographical area of the Board.

(3) After the Board under Subsection (1) is constituted, the Government of Nepal may transfer to the Board, as prescribed, the service being operated and managed by the Corporation within the Kathmandu Valley and the related service system, assets and liabilities.

(4) If at the time of constituting the Board under Subsection (1), any government agency is providing services in the municipal areas within the Kathmandu Valley, the Government of Nepal may also transfer its service system to the Board constituted under this Section.

(5) Within one year of the completion of the Melamchi Project, which is being operated at the time of commencement of this Act to bring water from the Melamchi River in Sindhupalchowk District to the Kathmandu Valley and include it within the Valley's service system, the Government of Nepal shall transfer all structures of that Project, equipment installed in such structures, and related liabilities to the Board constituted under Subsection (1), as prescribed.

(6) If the structures and equipment of such Project are transferred under Subsection (5), the structures built under that Project, the equipment installed therein and the service system shall be deemed to have automatically transferred to the Board constituted under this Section, and the responsibility for their repair, maintenance and expansion shall lie with that Board.

(7) When transferring the structures and equipment of the Project under Subsection (5), the employees associated with such structures, equipment or service system may, as necessary, be transferred to the Board under this Section.

(8) In addition to the functions, duties and powers mentioned in Section 6, the functions, duties and powers of the Kathmandu Valley Drinking Water Management Board shall be as follows:-

(a) To obtain water for providing services within its geographical area by diverting water from natural sources outside its geographical area, and to enter into agreements with other persons in this regard in accordance with the prevailing law,

Provided that while bringing water into its geographical area by diversion from outside its geographical area, a reasonable amount may be paid to the local bodies or consumers of that area.

(b) If it is necessary to take over any service system being operated by any municipality or service provider at the time of commencement of this Act, to take such service system into its ownership by paying reasonable compensation and operate and manage or cause to operate and manage it,

(c) Unless otherwise provided by the prevailing law, to regulate, control or prohibit, as prescribed, the extraction and use of water from underground sources within its geographical area, and to issue licenses as prescribed for extracting or using such water as necessary.