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 affect the production of goods and services and thus influence the level of economic activities, particularly in rapidly transforming societies, from agricultural to industrialized and modernizing economies. It is a meritorious good: without water, life itself and human development would be impossible. Water is already a scarce resource in most of India and the severity of the shortage increases every year. At the same time, there is an increased awareness of the economic importance of water and the struggle for access to 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 for resolving such disputes is that existing use must 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 scarcity increasing, it is clear that water use will need to be made more efficient across all sectors. The concept of water footprint of various products has been introduced, but not yet used, a few industries have initiated internal water audits and attempts are being made to introduce benchmarking of irrigation systems. All of these initiatives require the establishment of water accounting protocols. “Water accounting” doesn’t just refer to measuring and estimating paper……during dry months while maintaining sustainable groundwater levels. (Natalia Peranginangin, Ramaswamy Sakthivadivel, Norman R. Scott, Eloise Kendy, Tammo S. Steenhius-2003)5. Accounting for green and blue waters in the Ganges and Nile basins: implications for food and agricultural policy: most food in the world is produced from soil moisture that comes exclusively from precipitation, or water “Green” and “blue” irrigation water have generally been the focus of policies. analysis in the past given the possibility of human manipulation of these resources. The results show the importance of green/blue water accounting, presenting a broader range of agricultural science and technology policy options to increase global crop productivity over a range of potential futures. (Timothy B. Sulser, Claudia Ringler, Tingju Zhu, Siwa Msangi, Elizabeth Bryan, Mark W. Rosegrant-2009)