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Water Governance in Peri-Urban Areas
May 26, 2026

Context

  • India has achieved remarkable progress in improving access to drinking water through the Jal Jeevan Mission, which has provided tap water connections to nearly 80% of rural households.
  • Urban areas, despite facing periodic shortages, generally receive intermittent water supply.
  • However, between the rural and urban landscape lies a neglected missing middle, the rapidly expanding peri-urban regions.
  • These areas, where villages gradually transform into industrial and residential settlements, face severe challenges related to water supply, sanitation, and governance.
  • The absence of proper administrative recognition has made peri-urban India one of the most vulnerable regions in the country’s development process.

Growth of Peri-Urban India

  • Rapid Urbanisation and Census Towns
    • India’s rapid urbanisation is evident in the sharp rise of Census towns, which increased from 1,362 to 3,784 over the last two decades.
    • These settlements are no longer purely rural, yet they have not been fully recognised as urban centres.
    • As a result, they remain trapped between rural administration and urban governance systems.
  • Governance Vacuum
    • The lack of institutional clarity has created a major governance crisis. Peri-urban residents often pay urban-level costs but receive inadequate services.
    • In Gurugram, for instance, peri-urban areas were brought under municipal administration after rural governance structures were abolished.
    • However, weak civic management has left residents with poor water and sanitation facilities.
    • Similarly, residents of Rawta village near Delhi receive water only on alternate days and during late-night hours.
    • Such irregular supply forces families to sacrifice sleep for collecting water and increases dependence on private water vendors.

Environmental and Social Consequences

  • Groundwater Contamination
    • Poor waste management has severely damaged the environment in peri-urban areas.
    • In peri-urban Hyderabad, toxic leachate from dumping sites has contaminated groundwater, creating major health risks for local communities.
  • Unequal Water Distribution
    • Urban expansion often diverts resources away from rural and peri-urban populations.
    • Water from the Bisalpur dam, originally intended for irrigation in Tonk and Sawai Madhopur, is increasingly redirected to meet Jaipur’s urban demands.
    • Consequently, downstream farmers suffer from reduced water access and declining agricultural productivity.
  • Public Health Risks
    • The lack of proper sanitation systems has intensified public health concerns. Nearly 40 million urban households rely on septic tanks and other on-site sanitation systems.
    • However, irregular desludging and illegal dumping of untreated septage into rivers and fields contribute to pollution and disease, undermining the achievements of the Swachh Bharat Mission.

Future Challenges

  • Expanding Urban Demand
    • India’s future urban growth will place enormous pressure on existing infrastructure.
    • By 2047, the country is expected to require 230 million new housing units and nearly 500 new cities. Today’s peri-urban regions will become tomorrow’s urban centres.
  • Threat to Water Security
    • Without proper planning, India may face worsening water scarcity, environmental degradation, and rising inequality.
    • Peri-urban areas therefore hold the key to the country’s future water security and sustainable development.

Solutions and Policy Recommendations

  • Strengthening Governance
    • The first step is to address the administrative vacuum through the establishment of Nagar Panchayats, as envisioned under the 74th Constitutional Amendment.
    • Legal recognition must be accompanied by stronger institutional capacity and accountability.
    • Successful local initiatives, such as the collaborative platform in Sultanpur village, demonstrate that cooperation between authorities, engineers, and residents can improve governance.
  • Protecting Water Sources
    • Long-term sustainability requires protecting drinking water sources from encroachment, pollution, and waste dumping.
    • Community-based sanitary inspections, already successful in Maharashtra, can help strengthen local participation in water management.
  • Swachh Bharat Mission 3.0
    • A specialised Swachh Bharat Mission 3.0 should focus on peri-urban sanitation.
    • The programme should prioritise faecal sludge management, treatment plants in underserved regions, GPS-monitored desludging trucks, and mini-cesspool vehicles for narrow settlements.
    • Integrating sanitation costs into monthly water bills through a small levy could also improve financial sustainability.
  • Decentralised Wastewater Treatment
    • India must also promote decentralised wastewater treatment technologies.
    • Companies such as Indra Water and Tigreen have developed systems capable of recycling more than 95% of used water while requiring minimal land and energy.
    • These technologies need stronger policy support, financial incentives, and government procurement mechanisms to expand effectively.
  • Strategic Financing
    • Peri-urban water infrastructure should be treated as strategic infrastructure.
    • Blended financing models, such as Uttarakhand’s partnership-based approach combining state support with concessional international loans, can help fund sustainable water and sanitation systems.

Conclusion

  • Peri-urban India represents the missing middle in the country’s development story.
  • Despite its growing demographic and economic importance, it continues to suffer from weak governance, inadequate infrastructure, and environmental degradation.
  • Challenges such as irregular water supply, groundwater contamination, poor sanitation, and unequal resource distribution threaten both public health and long-term sustainability.
  • However, with effective governance reforms, innovative technologies, sustainable financing, and community participation, peri-urban India can transform into a water-secure, inclusive, and sustainable urban future.

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