This paper has benefited by four detailed case studies2 conducted in the Indrawati river basin by IWMI/Nepal and Water and Energy Commission Secretariat/Nepal (WECS/Nepal). It documents the major concerns in relation to Melamchi project on the Indrawati basin community,and illustrates the preliminary assessment of major project impacts in the basin. This paper particularly concentrates on, the likely impacts of the water diversion project on the economic and social fronts and local water use decisions, and also on the local environment. The major findings of the study in the Indrawati basin are summarized below.
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