(1) Government of Nepal, State Government and local level shall operate and manage clean and quality drinking water and sanitation services.
(2) The government of Nepal, the provincial government and the local level may conduct the operation and management of the service as per sub-section (1) by themselves or through an organized organization.
(3) Notwithstanding anything written in sub-section (2), the operation and management of basic drinking water and sanitation services shall be carried out by the Government of Nepal, the provincial government and the local level in mutual coordination by themselves or through an organized organization owned or controlled by them. (4) The organization that has received the permit must provide water service in the specified quantity from the water supply system within the water supply area specified in the permit on a regular basis.
(5) If the licensed organization is unable to distribute drinking water regularly in accordance with sub-section (4): it shall provide drinking water of appropriate quality and quantity to the consumers through tankers or other alternative arrangements.
(6) If the organization that has received a license cannot distribute water regularly in accordance with the schedule provided by it within its service area, it shall not be entitled to charge fees or charges for the period in which it was not able to distribute water.