IntroductionWater, a vital resource for every biological phenomenon, is essential for human civilization, living organisms and natural habitat. water is a primary input for all goods and services, directly or indirectly; the quantity and quality available can influence the production of goods and services and therefore influence the level of economic activities especially in rapidly transforming societies, from agriculturally based economies towards industrialized and modernizing economies. It is a good of merit: without water, life itself and human development would be impossible. Water is already a scarce resource in most parts of India, and the severity of the shortage is increasing every year. At the same time, there is greater awareness of the economic importance of water and the battle for access and use of available water is also becoming more intense. In addition to interstate and international disputes, there are now disputes between various user groups, viz. farmers versus urban users, farmers versus industry, all human users versus the environment, etc. A standard principle of resolution of such disputes is that the existing use should be protected and the water balance can be negotiated. However, determining the current use or balance of available water is much more complicated than it seems. With increasing scarcity it is clear that water use will need to be made more efficient in every sector. The concept of water footprint of various products has been introduced, although not yet in use, some industries have initiated internal water audits and attempts are being made to introduce benchmarks of irrigation systems. All these initiatives require the definition of water accounting protocols. “Water accounting” refers not only to measuring and estimating...... middle of paper ...... during dry months, while maintaining sustainable groundwater levels. (Natalia Peranginangin, Ramaswamy Sakthivadivel, Norman R. Scott, Eloise Kendy, Tammo S. Steenhius-2003)5. Green and Blue Water Accounting in the Ganges and Nile Basins: Implications for Food and Agricultural Policy: Most food globally is produced from soil moisture that comes exclusively from rainfall, or “green” water ” and irrigation “Blue” water has generally been at the center of policy analysis in the past given the possibility of human manipulation of these resources. The findings show the importance of green/blue water accounting presenting a broader range of agricultural science and technology policy options for increasing global crop productivity over a span of potential futures. (Timothy B. Sulser, Claudia Ringler, Tingju Zhu, Siwa Msangi, Elizabeth Bryan, Mark W. Rosegrant-2009)