The document summarizes water supply and markets in Kathmandu Valley, Nepal. Water demand is increasing steadily but the main utility can only supply 105 MLD in the wet season and 75 MLD in the dry season. To meet additional demand, commercial water extraction and vending using water tankers has grown to supply over 25 MLD in the peak dry season. Water is extracted from over 40 locations in peri-urban areas. There is debate around how to regulate the growing groundwater market between supporting it as a supplement to utilities versus seeking to limit extraction and discourage the market.

1. Implications of Evolving Water Markets on Peri-Urban Water Security in Kathmandu Ashutosh Shukla Nepal Engineering College January 10, 2012

5. Estimated Volume of Water Transferred by Tankers Variable Unit Peak season (dry season) Off-peak season (rest of the year) Number of the tankers operating in the valley Number 750 750 Average carrying capacity of the tanker truck Litres/ tanker 8220 8610 Number of trips per tanker per day Per tanker per day 4.15 2.38 Estimated amount of water supply Million litres per day (MLD) 25.58 15.36 Estimated amount of water supply Million cubic metres (MCM) 3.837* 3.226 Estimated annual water supply MCM 7.063

7. Comparison of price charged by vendors and utility KUKL’ s Water Tariff Piped Supply Rs. 3.9/m 3 US$ 0.048/m 3 Tanker Supply: Rs. 190/m 3 US$ 2.37 /m 3

8. Water Extraction from Peri-Urban Areas Locations Number of Water extraction points Water production in dry (peak) season (MLD) Water production in off-peak season (MLD) Chobar (nearby old cement factory + near Taudaha-Chanlakhel) 4 1.48 0.92 Matatirtha VDC 12 1.50 0.82 Jorpati VDC/ Mulpani VDC (Thali) 10 4.70 3.00 Balaju (nearby Ganga Cinema Hall) 2 0.93 0.60 Manamaiju VDC 4 1.39 0.10 Sitapaila/ Thulo Bharyang/ Swayambhu 4 0.28 0.12 Gongabu Buspark 1 0.50 0.05 Gothatar (Kadha Ghari) 3 1.80 0.75 Total 40 12.58 6.36