1.1 Bhutan has been consistently following a conservation-centered development policy. This policy was inherited from the wisdom of the forefathers who knew that ensuring the integrity of forests, rivers and soil was vital to their survival in the mountainous environment. This wisdom, which has been synthesized into the modern development philosophy, has been crucial in maintaining a good natural resource base. 72.5% of the country is under forest. The good vegetation cover with a fair spatial distribution of precipitation on a mountainous topography has endowed the country with rich water resources. The average flow draining the country area of 46500 km² is estimated at 1600 m³/s. This puts the per capita availability of water per annum at 75000 m³, which is the highest in the region. The mountainous topography with varying altitudes from 100 m to over 7500 m, drained by four major rivers with their numerous tributaries have resulted in a high potential for hydropower development.

1.2 However, the abundance of water at the national level gives a false sense of security. The uneven distribution of precipitation in time and space has led to seasonal and local imbalances. The country is already confronted with localized and seasonal water shortages for drinking and agricultural purposes. Today only 78% of the population has access to safe drinking water and only about 12.5% of the arable land is irrigated. The fluctuation between lean season and monsoon season flows is on the rise leading to sub-optimal utilization of generating capacity of hydropower plants. The increasing sediment load in rivers is decreasing the expected output and economic life of the hydro power plants. Floods and landslides are two major threats that emanate from the monsoon dominated climatic setting.

1.3 The pressure on the water resources is mounting due to competing demands from different users. In the past, water was mainly used for domestic and agricultural purposes. The domestic water demand is increasing due to changing lifestyles caused by socio-economic development. The water use for agriculture will increase due to its intensification to keep pace with food demand of a growing population. New demands are emerging from other sub-sectors such as hydropower and other industries. Urbanization has become a key issue that has serious impact on both water demand and quality.

1.4 The cost of watershed conservation is high. On the other hand, the effective management of watershed is imperative to water resources conservation and its sustainable utilization. Due to the fast pace of socio-economic development, there is tremendous pressure on the watershed. Although harvesting of any forest produce is done based on sustainable management plans, the increasing demand on timber, firewood and non timber forest products, is starting to have negative impact on the watershed. Forest land encroachment and forest fires have become major challenges for watershed conservation.

1.5 At high growth rate of 2.5% per annum, the population will more than double in the next thirty years. This growth poses a serious challenge in the sustainable management of the natural resource base, given the low carrying capacity of the fragile mountainous ecosystem.

1.6 Glacial lake outburst floods (GLOF) have increasingly become a threat for Bhutan due to global warming brought about by climate change. This will have serious impact on life, properties and future infrastructures development. The natural flow regulating capacity of the glaciers will decrease.

1.7 The existing water user institutions have weak functional linkages at policy, planning and programming levels. The different sub-sectors have been performing their respective responsibilities independent of each other. This has resulted in fragmented data, duplication of efforts and poor resource management systems. It has sacrificed the synergy of integration. For instance, today, the drinking water program is looked after by two ministries: Urban water supply is under Ministry of Communications and Rural water supply is with the Ministry of Health and Education. While the Ministry of Agriculture handles watershed, land use and irrigation, hydropower, hydro-meteorological data collection and GLOF are looked after by the Ministry of Trade & Industry. Above all, the national perspective on the water resources sector is missing, leading towards potential conflicts among the sub-sectors.

1.8 There is no comprehensive law on water. Only certain clauses related to water are found in few Acts such as the Land Act, 1979, Forest and Nature Conservation Act, 1995, Environment Assessment Act, 2000, Bhutan Electricity Act, 2001 and Water and Sanitation Rules framed in pursuance of the Municipal Act 1999. These clauses are sometimes contradictory to each other. Farmers practice different customary rights on sharing water for paddy cultivation and other crops. Therefore, there is an urgent need for a comprehensive Water Act.

1.9 On the international front, Bhutan is signatory to United Nations Convention on the law of the sea, 1982, Framework Convention on Climate Change, 1992 and Convention on Biological Diversity, 1992.
         

2.1 Nature, Water and Human Life are interdependent, inseparable and must coexist in harmony and balance.

2.2 To achieve this vision, water must be managed and used sustainable, efficiently and equitably while recognizing and preserving the environmental, social, cultural and economic value and uses of water.

2.3 All water users, planners and decision-makers shall be adequately informed, educated and encouraged to value and protect water in all its forms and uses.

2.4 Realizing this Vision requires the involvement of all people in Bhutan working in a continuous partnership within an enabling policy, legal and institutional framework.  

3.1 The Royal Government has taken the decision that sustainable agriculture development, harnessing the hydropower potential and industrial development shall be the avenues of socio-economic development. Water is one of the main resources required in fulfilling these important national objectives. Therefore, the need for a water policy to guide the sector in the best interest of the Nation cannot be overemphasized.

3.2 Water is a precious natural resource and a basic human need for survival. Development and management of water resources must be guided by national perspectives.

3.3 Water is finite. The socio-economic development inevitably leads to increasing demand on water for diverse purposes: domestic, agricultural, hydropower, industrial, recreational etc. Water is a crucial element in all these development areas. Therefore, conservation, development, utilization and management of this important resource have to be guided by national goals.

3.4 The need for an integrated approach is crucial for effective management of water resources for fulfilling our diverse national objectives. The enabling environment has to be created for active participation of all stakeholders.

3.5 Floods including GLOF affect vast areas resulting in loss of lives and properties. It is essential to develop national flood management strategy.

3.6 Water resources assessment is crucial in informed decision making. The inventory of water resources both in terms of quality and quantity needs to be developed.

3.7 The need for coordinated efforts on all water resources development and building of an institution for integrated approach in the management of water resources and its sustainable utilization is felt necessary. The policy shall create the enabling environment for integrated water resources management.

4.2 This Policy adopts an integrated approach, which recognizes natural linkages. Emphasis is placed on water resources management within river basins and aquifers, including both upstream and downstream water users. Surface and ground water are seen as two forms of the same resource, often with close linkages. Both water quantity and quality are important and interlinked; therefore, their planning and management must be done in a coordinated manner.

4.3 Water for human sustenance has direct linkage with poverty. Recognizing this strong linkage, all water programs shall aim at poverty alleviation to achieve Gross National Happiness (GNH).

4.4. The Water Policy treats water resources from a broad, multi-sector perspective while recognizing the responsibility of those sub-sectors to play their part in meeting the policy objectives. The policy principles are thematically grouped as follows:

i) Water user interests and priorities;

ii) Principles for water resource development and management;

iii) Institutional capacity building for water resources management; and

iv) International waters.

4.5 The Bhutan Water Policy shall cover all forms of water resources including snow, glaciers, rivers, lakes, streams, springs, rainwater, soil moisture and groundwater.

5.1Allocation of Water

5.2 Water for Drinking and Sanitation

1. It is well known that water is essential for human survival and health. Therefore every individual has the right of access to safe and sufficient quantity of water for personal consumption and sanitation at an affordable price.

2. The goal of the Royal Government shall be to provide universal access to safe water and sanitation. National standards for water quality shall be developed. The best available water sources shall be allocated for drinking purposes.

5.3.1 Sustainable agriculture development is an important component of socio-economic development. It is the source of livelihood for 79% of the population. Adequate water allocation in this sector is indispensable for achieving the overall national food security. Therefore, water allocation in the sector must be compatible with this national objective.

5.4 Water for Hydropower Development

5.4.1 The mountainous topography of the country provides comparative advantage for hydropower development. The swift flowing rivers in deep valleys with sustained discharges from fairly un-disturbed watersheds create a favorable conditions for hydropower development. Hydropower is a non-polluting and a clean form of energy from non-consumptive use of water.

5.5 Water for Industrial Use

1.The need for water by industries shall be recognized and allocated in accordance with the priority ranking in section 5.1. Its rational and efficient use with proper disposal of wastewater shall be made mandatory. The prospect of our mountain spring water as an environmentally clean product shall be encouraged.
2.Development of tourism and recreational potential of Bhutan's watercourses will create additional opportunities and shall be promoted in a sustainable manner. The potential of our hot springs, which have medicinal as well as recreational value, shall be promoted.

5.6 Water Use and Conflicting Users Interests

1. Competing water uses which result in conflicting water users interests shall be solved through legal instruments. Legislation related to water that exist in various Acts are not comprehensive, and does not address the current and future water problems adequately. Therefore, there is a pressing need to enact a comprehensive legislation on water, the Water Act, which shall regulate water uses in a sustainable way, resolve water-related conflicts, and ensure necessary conservation of water resources. The Water Act shall recognize and respect customary rights that are based on justice, equity and good faith.
2. Water in Bhutan shall be a common good. The state shall have the right and mandate to regulate the use of water resources and intervene in cases of conflicts. However, water management shall be broad based with the involvement of all stakeholders through a consultative process. All legitimate users shall have equal access to the use of water under the provisions of the Water Act.

6.1 Water Resources Development

6.1.1. Sustainability of water resources in the Bhutanese context means to integrate the conservation, development and management on scientific basis, to maintain the safe yield of surface water sources, to prevent water pollution, to reduce the risks of flood and landslide damage and to promote the active participation of all stakeholders. Sustainable technical systems shall involve investigations, sound and affordable designs followed by constructions of high quality and their effective maintenance. The use of appropriate technologies backed up by good management practices shall be promoted for saving water in households, agriculture and industrial uses. Sustainability also has socio-economic dimensions and therefore shall be an integral criterion in decision-making.

6.1.3 Water resources conservation, development and management programs are capital-intensive. A prudent fiscal policy to develop the sector shall be important for its growth. Funds shall be mobilized through grants, loans, equity and cost sharing mechanisms for the development of water projects. Investments from private sectors shall be encouraged. Preference shall be given to cost-effective multi-purpose and multi-use projects.
6.1.4 Water resources development shall be carried out in an environmentally sustainable, economically feasible and socially acceptable manner.

Water Resources Management

1.The water resources management shall respect the integrity of rivers and aquifers. As land-use has direct impact on water cycle, it is crucial that land-use planning shall take place at the river basin level. The upstream downstream relationship has impact on the management of water resources. Therefore, water resource management in Bhutan shall be based on natural river basins. Conflicting user interests as a norm shall be resolved in a river basin context.
2.The main river basins shall form natural unit of a national water management system. Appropriate institutional structures for water resources management at the basin level shall be developed.
3.Consistent water demand management shall complement the optimal development of water supply. Demand management shall include water-saving technologies, regulatory measures, and increased public awareness. Pricing policies are effective tools for managing water demand, and shall be an integral part of the water demand management initiatives.
4.Water resources management in Bhutan shall be carried out in an integrated way with the participation of all stakeholders. Many water management problems, leading to crises of quantity and quality are associated with lack of integration, top-down management and disregard of upstream-downstream relationship. The important elements of an integrated water management shall include:

a) Water circulation within the river basin, between the basin and the surroundings shall always be taken into consideration;

b) Land-use planning shall take place within the framework of the river basin;

c) It shall recognize the transport of matter, including polluting substances that occurs between soil, air and water;

d) It shall recognize that usable water is always a function of both quality and quantity, and the two are strongly inter-connected;

e) Water supply and wastewater management shall be integrated at all administrative levels;

f) Rivers, lakes and wetlands shall be sustained as bio topes for aquatic life;

g) All legitimate water users shall be equally respected, and have a voice in decision-making;

h) Central and local water management shall be consistent and interlinked; and

i) Integrated water management shall include monitoring, data collection, analysis and access.

j) Management of GLOF related to monitoring, early warning and mitigation.

6.3 Value of Water

6.3.1. Water has an economic and a social value. In order to achieve equitable sharing when there are competing water users, demand management techniques shall be introduced. Economic tools are efficient in modifying demand, but shall be applied with care. Sustainable management of water as a resource is only possible when its full cost is acknowledged during the planning and development of water projects. Cost recovery scheme shall include economic and environmental costs. Tariff structures shall therefore aim at cost recovery of providing water, but shall be formulated so as to provide drinking water to poor sections of the population at an affordable price.

6.4 Water Resources Protection

6.4.1 All forms of water resources shall be protected. Pollution impairs water quality, and hence reduces the water resource base. Such practices shall be prevented or modified in order to protect water resources. This is particularly important for drinking water supply. Forests in Bhutan are conserved and protected for many reasons, which include regulation of runoff, reduced erosion, bio diversity, wood supply, recreation etc. Watersheds essential role as sustainable sources of water shall be protected.

6.4.2 It is particularly important to protect the watersheds providing drinking water. Surface water sources that are used for water supply shall be protected. Another important aspect is water quality. The quality of groundwater shall be monitored in view of its potential role as supplementary water source in future and shall be co-ordinated with the general surface water quality monitoring. Environmental impact assessments shall give special considerations to impacts on water and aquatic life. Introduction of clean technologies for industrial production related to water shall be promoted.

6.5 Flood Control and Management

7.1 Institutional Set Up

a) planning on water resources at national level,

b) Water circulation within the river basin, between the basin and the surroundings shall always be taken into consideration;

c) setting standards and guidelines,

d) monitoring and evaluation,

e) data collection and distribution,

f) Research &Development planning & support,

g) licensing and regulating activities,

h) capacity building and technical backstopping,

i) coordination of emergency preparedness,

j) flood and disaster management related to water resources,

k) international water co-operation.

7.2 Responsibility for the Management of the Water Resources

The state shall act as the trustee of water resources and shall be responsible for overall regulation and management. Since water is a valuable resource that should be protected in the public interest, the state has an obligation to ensure a just, equitable, and sustainable allocation among all legitimate water users including rationing during scarcity.

7.3 Management of Information System

A prime requisite for efficient water resources conservation, development, management and planning is a well-developed information management system. A standardized national information management system with network of data banks and databases shall be established. The establishments main function will be designing the information collection network and data collection with integration and strengthening of the existing central and dzongkhag level agencies. It shall work towards improving the quality of data and their processing. Information and Communication Technology (ICT) shall be adopted as an effective tool for this purpose. It shall facilitate free exchange of data among the various partner organizations for their use and dissemination of information.

7.4 Human Resources Development

1. For efficient management and development of water resources, sufficient human resources, their skills and knowledge are important prerequisites. Therefore a prospective plan for training of planners, managers, implementers and the users shall form an integral part of the institutional capacity building measures. In this regard, priority training shall be imparted on information systems, cross-sectorial and integrated planning, multi-purpose project planning and formulation, project management, conservation, watershed hydrology, operations and maintenance of physical infrastructures related to water resources management and development.

2. Awareness campaigns and sensitizing all users on the importance of water are important aspects that need special attention. In this regard, there is need for training of sociologists and institutional experts to encourage efficient management and development of water resources programs.

1. For effective and economic management of resources and also to keep up with the dynamics of change and development, constant efforts shall be made in applied research on water conservation, management and development. If necessary, appropriate technologies shall be imported and adopted.

2. Following areas need special attention:

1. Hydro meteorology
2. Assessment of the National Water Resources
3. Surface water source and watershed protection
4. Ground water hydrology and recharge
5. Water harvesting
6. Water balance studies
7. Crop Water Requirements and Cropping systems
8. Soil and Bio-Engineering
9. Flood control and mitigation
10. Erosion & Sedimentation of Reservoirs
11. Safety and Longevity of hydraulic structures
12. Recycling and Re-use
13. Good Management Practices
14. Economic and Financial Planning

Trans-boundary Water Resources

8.1.2 Cooperation in information sharing and exchange, appropriate technology in water resources development and management, flood warning and disaster management shall be initiated at the regional and global level.