Policy and institutional study on the strategic role of water storage in Bhutan

This policy and institutional study was conducted as part of the Built Water Storage in South Asia (BWSSA) project (2023–2026), implemented by the International Water Management Institute (IWMI) and the Global Water Partnership (GWP). The BWSSA initiative aimed to transform how water storage—both built (gray) and natural (green) infrastructure—was perceived, planned, and managed across five countries: Nepal, India, Bhutan, Bangladesh, and Pakistan. The project sought to strengthen national capacity for integrated storage planning, promote data-informed decision-making, support regional dialogue, and address inequities in access and benefit-sharing related to water storage.

The policy and institutional study, conducted in each country, focused on six core questions: the types and roles of water storage across geographies and sectors; current and planned investments; the institutional and decision-making landscape; the alignment of sectoral storage plans with integrated water resources management (IWRM); opportunities for inclusive planning; and key knowledge gaps. It involved a three-phase process: (1) a review of national policy and strategy documents; (2) key informant interviews with stakeholders from government, civil society, academia, and the private sector; and (3) validation of findings through consultations. This iterative, participatory process helped surface implementation challenges, build credibility, and foster alignment among actors.

Bhutan has the highest per capita water availability in South Asia, yet faces water insecurity due to seasonal variability, steep terrain, and climate-related risks such as glacial lake outburst floods. Increasing spring drying—especially in upland areas—has exacerbated water stress and underscored the importance of decentralized and nature-based storage interventions.

Piped water access is widespread, but supply remains unreliable, particularly in rural and peri-urban areas. The government is promoting rainwater harvesting, checking dams, and community ponds, while exploring multi-purpose reservoirs to meet domestic and irrigation needs.

Agriculture, the largest water-consuming sector, depends heavily on monsoon rains and river-fed channels. Policy is shifting toward small-scale, climate-resilient storage options like on-farm tanks, protected sources, and small reservoirs to reduce rainfall dependency.

Hydropower, the backbone of Bhutan’s economy, is mainly run-of-river-based. Seasonal generation gaps and export ambitions have led to interest in reservoir-based hydropower, though environmental and downstream risks require careful management.

Natural ecosystems—forests, wetlands, and watersheds—play a central role in water storage and flow regulation. Bhutan’s commitment to environmental conservation supports long-term water and climate resilience.

A 2022 reform created a unified ministry and a Department of Water to coordinate cross-sectoral water management. However, despite decentralization mandates, strategic planning remains largely centralized.

Community engagement in water storage varies. While formal user groups exist, informal rural institutions are under-recognized. Supporting these groups through policy inclusion and capacity-building is essential.

Regionally, Bhutan collaborates with India on hydropower and flood early warning. However, the absence of data-sharing agreements with China—where major rivers originate—limits Bhutan’s capacity for upstream risk management and resilient storage planning.

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