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Abstract: Water available in small watersheds primarily serves household and irrigation needs of the local population. For economical use of water, correct understanding of water availability is necessary mainly because the consequences of such plans are immediate and they could impact the livelihood of people around the watershed. In this paper, a post project case is presented to highlight the opportunities and conflicts on water use in a small watershed. Simulation study is done to show the impact of water regulation for irrigation and power generation. Based on the case study, a few recommendations have been made on water regulation policy to avoid water use conflicts in the study area. [Copyright &y& Elsevier]