On its eastern boundary, Rajasthan has a perennial river Chambal. Otherwise, the availability of water in Rajasthan is mainly through wells. The availability of water from ground water sources in most parts of the State is reported to be good, although the water table is around 30 to 50 metres, which requires deep bore-wells to pump out the water.

Water is now available in Sri Ganganagar, Bikaner, Jaisalmer and Jodhpur districts from the Indira Gandhi Canal. Water availability in Banswara district has improved due to commissioning of Mahi project and Narmada water would cover areas of Jalore and Barmer. The historic agreement finalised recently among the basin states of the Yamuna waters would augment the water availability in the eastern part of state by 1119 million Cum.

On the whole, the water availability in the State, though limited, should not be a constraining factor for setting up industry. However, industrial units requiring large quantities of water (such as paper mills) would not be suited for Rajasthan.