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Synopsis Water is the most sought resource for human use. Owing to rapid population growth and urbanization as well as rising needs of power generation and modern industry, water has been a major concern, as could be seen from the recent attempts in international cooperation in conserving and utilizing the global water resources. Since water is a component of river basin, its role in river basin research cannot be over emphasized for without it a comprehensive appraisal of development potential of a basin can never be achieved. The present study provides various methods and techniques for evaluation of water resources in a basin. The Upper Vaigai Basin, located in a rain-shadow region of Theni and Dindigul Districts of Tamil Nadu, is one of the beneficiaries of the west flowing River Periyar. The first chapter unfolds the subject matter and procedure of the study. The second chapter gives a geographical background of the Upper Vaigai basin. Evaluation of surface and ground water resources along with climatic water balance are analyzed in the third chapter. The fourth chapter examines the development and utilization of surface and ground water resources and provides an insight into the problems and prospects of water resources. The final chapter summarizes the research work and outlines the future course of study. This sort of water resource studies are essential to help to modernize water use and find out measures in formulating efficient water use policies.