Main river that flows through the Nizamabad district is Godavari. It flows 11 kms in the north and then enters Karimnagar. Manjira is its tributary. Much of the land in the district gets irrigated from the Nizam Sagar Dam.  

The total irrigated areas in hectares presently are 71,000 as against 1,33,000 in the year 1956-57.

NIZAM SAGAR PROJECT: Originally the dam was built in 1931 across Manjira river for irrigation of an ayacut of 275,000 acres, but at present only a fraction is under irrigation. The following reasons are cited for reduction in irrigation.

1. It is said that due to construction of Sriram Sagar Project, tail end ayacut will be submerged. The government has not come out with the actual ayacut that will be effected due to SRSP.

2. Due to construction of Singur Dam, which was planned to supply mainly the drinking water to the city.

3. Further the storage capacity is reduced. The government is proposing to lift the water beyond Alisauger Tank. But the govt. has so far not taken steps for lifting the water as proposed, and did not take any measure to desilt the reservoir. It is said that the govt. still examining the lift irrigation. For its techno-economic feasibility, as it may involve spending of 143 crores which the A.P. Govt. is not ready to spend. It is clear that the govt. of A.P. is not willing to implement the strategy suggested by the G.W.U.A in the near future.