Bhutan is rich in water resources but still faces a number of challenges due to access to water at reliable quantities throughout the year to meet growing demands from agriculture, industries and domestic consumptions. There are also emerging challenges from pollution and climate change. Integrated Water Resources Management (IWRM) approaches can be useful to provide a comprehensive overview and strategy to managing water resources and sectoral uses in a more holistic manner with the supporting intertwined information, institutional/policy and investment facilitation. This interactive e-book provides an overview of Bhutan context, discussing its water resources, demands, and infrastructure context. It also delves deep into the current evolving institutional structure for water management in the country, including early focus on operationalizing IWRM concepts in the western Wangchhu basin that also includes the Bhutanese capital, Thimphu.It has been developed by the World Bank team working on a Bhutan Water Analytical Services & Advisory (ASA) activity that explores both water resources management and water supply issues.