Govt prepares new umbrella law for water resources management under federal structure

KATHMANDU: The government is accelerating preparations to introduce a new umbrella law aimed at restructuring Nepal’s water resources management framework in line with the country’s federal governance system.

The Ministry of Energy, Water Resources and Irrigation has completed revisions to the draft Water Resources Bill 2083 and is preparing to move it forward for approval. The proposed legislation is expected to serve as an integrated legal framework governing the management, conservation, and utilization of Nepal’s water resources.

The bill is being developed to replace the decades-old Water Resources Act, 2049 (1992), with a central objective of establishing a clearer legal basis for the division of authority among the federal, provincial, and local governments as mandated by Nepal’s Constitution.

Officials say the proposed law will enable provincial and local governments to formulate separate legislation within their constitutional jurisdictions once the new federal framework is enacted.

Focus on Conservation, Sustainable Use and Disaster Mitigation

According to the ministry, the primary objective of the new bill is to ensure the conservation, multidimensional use, and proper development of water resources while prioritizing sustainable utilization and integrated water resources management.

The legislation also seeks to strengthen mechanisms for mitigating water-induced disasters, an increasingly urgent issue for Nepal amid climate-related risks such as floods, landslides, glacial lake outburst floods (GLOFs), and erratic monsoon patterns.

Nepal’s abundant rivers and water systems remain critical not only for hydropower generation and irrigation but also for drinking water, agriculture, biodiversity conservation, tourism, and industrial use. However, overlapping jurisdictions and legal ambiguities under the federal system have often delayed project approvals and created institutional confusion.

Expanded Powers for Water and Energy Commission Secretariat

A major feature of the proposed legislation is a plan to strengthen the role of the Water and Energy Commission Secretariat by granting it expanded powers.

Under the draft bill, the secretariat would be developed into a more authoritative institution responsible for water resource regulation, inter-agency policy coordination, and long-term strategic planning. The commission’s scope is also expected to expand with additional responsibilities tied to integrated water management.

The move reflects the government’s attempt to create a more centralized coordination mechanism while maintaining constitutionally defined powers for provincial and local bodies.

Rules to Be Prepared Alongside the Law

The ministry has also begun parallel work on drafting necessary regulations to ensure smoother implementation immediately after the law is enacted. Officials say preparing operational guidelines in advance will help avoid administrative delays and legal uncertainty.

The government aims to secure passage of the bill during the current parliamentary session. To meet this timeline, the revised draft is expected to be submitted to the Ministry of Law, Justice and Parliamentary Affairs and later to the Cabinet for approval by the first week of Jestha.

Addressing Longstanding Federal Governance Gaps

Since Nepal adopted a federal structure, water resources governance has remained one of the sectors facing legal ambiguity due to unclear jurisdictional boundaries among different tiers of government.

Confusion over project approvals, licensing authority, river basin management, and resource utilization has repeatedly surfaced between provincial and federal institutions, often slowing infrastructure development and investment decisions.

Policy experts believe the proposed legislation could help institutionalize Nepal’s water governance system by eliminating overlapping authority and establishing a more coordinated framework for water resource development.

For Nepal, where hydropower expansion, irrigation modernization, and climate resilience are increasingly central to economic growth strategies, the proposed Water Resources Bill 2083 is expected to play a pivotal role in shaping the country’s long-term resource governance architecture.