This chapter is devoted to the management of water resources through palaeochannels. Employing palaeochannel in water resource management (i.e. moderation of the monsoon floods in one part of the Damodar Fan Delta and augmentation of the surface and groundwater resources in another part for reducing the water-stressed condition) could be a viable option. To this end, this investigation demonstrates the recharge potential of the palaeochannel and explores socio-economic demands and constraints. Finally, the study proposes a framework for integrated water resource management using palaeochannel via two main ways: (1) palaeochannel as flood diversion canal for the moderation of floods and (2) palaeochannel as individual and community ponds mainly for groundwater recharge and palaeochannel fishing. Thus, this study would play a pivotal role in the management of water resources using locally available palaeochannels with minimum modification of the natural landscape and minimum cost involvement. However, an extensive investigation is required regarding the cost–benefit analysis concerning water resource management through palaeochannels.