The city of Lalitpur is in severe deficit of drinking water for its population. The Kodku Khola as the nearest river from the Lalitpur city can be used for the water supply purpose. The engineering geological and hydrological investigation is essential for water supply so the existing data and information pertaining to hydrological, geological and geotechnical characteristics of the study area, etc. were collected and analyzed in order to identify their discrepancies. The geological study included the Basement rock of Phulchowki Group and thick semi-consolidated fluvio-lacustrine sediments. The Rainfall data analysis was done to estimate future rainfall trend that determines the rainfall intensity, duration, frequency, maximum and minimum rainfall. With the help of Mean Monthly Rainfall (M.M.R), the normal, abnormal and drought months of the year were predicted. The volume of water and discharge was calculated. The proposed dam site is along 200-m long rocky gorge formed by the Kodku Khola. The raw water drawn from the river is chemically analyzed to know the quality of the water.