The rapid and haphazard urbanization in Kathmandu and expansion of built-up area to the peri-pherial rural landscapes has resulted to formation of peri- urban areas which are now themselves transforming into urban form. Simultaneously, the water being diverted or transferred from these peri-urban areas is rapidly evolving. This paper describes the changing modes of urban oriented water flow from the peri-urban landscape of Kathmandu and the implications of this water transfer on water security of peri-urban areas. Through series of semi-structured interviews, formal and informal discussions with local people and key informant interviews, the study found that Matatirtha, a peri-urban village, has traditionally been a source of water for the domestic water demand in Kathmandu. However, the social and economic developments have induced a paradigm shift in urban water transfer from the area and promoted the economic benefits as a way of compensating the loss of local water resources. Moreover, the increasing opportunities of economic benefits through water in absence of regulatory mechanism have facilitated exploitation of resources. This, therefore, created need of strong mechanism, promoting insights for sustainable management of water resources and contribute to improve rural urban linkages through optimal use of water resources. DOI: http://dx.doi.org/10.3126jst.v15i1.12025 Nepal Journal of Science and Technology Vol. 15, No.1 (2014) 99-106
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