Water in Nepal is a key strategic natural resource, which has potential to leads all round development and economic growth of the country. Integrated Water Resource Management (IWRM) is a holistic management approach, integrating land water interaction, socio-economic groups, upstream downstream relations, indigenous knowledge, and institutions built up, along the temporal dimensions based on an agreed set of principles. It is a Bottom-up decentralized approach for the management of water resources. IWRM is a challenge to conventional practices, attitudes and professional certainties. It confronts entrenched sectoral interest and requires that the water resources are managed holistically for the benefits of all.The broad objective of the multidisciplinary study was to assess the possibilities of human dimensions of water resource development and its management. Water resource accounting is done by the collection of water resources data through participatory group formation. Scientific data of hydro and metrological stations was also acquired. Hydrological modeling tools were also used. Feasibility of hydropower plant and potential of power production in the basin was readily estimated.Total daily discharge of the Durlung Watershed was estimated on an average as 157 Million Liters. Rivers of the watershed are turbulent, unsteady and flowing with very high current, which can be utilized by local people for low cost drinking water, tourism, irrigation and hydropower generation. Micro-hydropower production possibilities in Ratan and Deuta River has shown multidimensional positive impacts on socio-economic development of the region level of community partnership in IWRM and synchronization with the Local, District and National level institutional framework for Basin Management was observed to be satisfactory. Participatory research was carried out to identify water resource base with school and community partnership. Community motive, their difficulties and gaps in community level organization were identified. Capabilities of community, to take over the responsibilities of IWRM concept, there is a lot more need of training and capacity building for now.