Nepal is bestowed with abundant water. With more than 1500 mm average annual rainfall in the country, a vast quantity of underutilized groundwater in the Terai belt, and the water stored in snowcaps in the Himalayas, aquifers in the mountains and glacial lakes, Nepal is potentially in an advantageous position in terms of per capita availability. However, low emphasis in management aspect of water and high emphasis in infrastructural developments related to water resources management has resulted in conversion of water in Nepal from a resource to a burden. The global climate change, reduction in number of rainy days, increase in intensity of rainfall during wet monsoon season, encroachment of river banks for settlement, inadequate release of environmental flows from hydropower plants, and attempt to tame the mighty and high velocity rivers of Nepal have resulted in increasing number of water induced disasters (flood and landslide), rise in conflict between local residents and hydropower developers, higher number of devastating landslides, and in some extreme cases mass migration of residents resulting in climate refugees. There is a ray of hope; the awareness level of the people regarding sustainable use of water resources is increasing, the benefit sharing mechanism is gradually being implemented, the role of interdisciplinary and integrated water resources management is appreciated at a higher level and the level of preparedness against flood and landslides is at a higher degree compared to a couple of decades ago. With the use of renewable energy sources, the possibilities for sustainable and productive use of water are on the rise in Nepal.