An indirect, sensitive and accurate method for the determination of trace amounts of hydrazine is described. In this proposed the spectrophotometric method is based on its reduction properties of hydrazine with a known concentration of potassium permanganate to reduce the colour. The absorbance of unreduced permanganate is measured the colour difference at different wavelengths 546 and 526 nm which show an absorption spectrum with hydrazine. Hydrazine can be determined in the range of 100 - 700 µg/ml with correlation coefficient of 0.999 and relative standard deviation 1%. The method is successfully applied for the determination of hydrazine in water streams in nuclear reactors/purex process/boiler water and polluted water samples