In the middle mountains of the Hindu Kush-Himalayas people depend to a large extent on rainwater for their water supply – but rainfall is highly seasonal. During the summer monsoon, heavy rains lead to flooding and surface erosion; during the rest of the year people face water shortages. Increasingly, water quality is also becoming an issue. Improved water supply management is crucial, but proper planning and management means first knowing about the needs and the priorities of local farmers, and understanding their strategies for coping with water scarcity and excess. The People and Resource Dynamics in Mountain Watersheds of the Hindu Kush-Himalayas project (PARDYP) carried out a Water Demand and Supply Survey in its two middle mountain watersheds in Nepal to shed light on the current situation and provide a basis for planning future activities and making suggestions. The survey was designed to discover people’s perceptions, requirements, and priorities, as well as to look at the existing situation. This publication describes the results of the survey and briefly examines the field programmes initiated in response. The main results are summarised in a brochure, details and illustrations are provided on a CD-ROM.