Section 4

(1) The State Government shall have the power-

(a) to regulate and control, by rules made under this Act, the collection, retention and distribution of water and water sources;

(b) subject to the rules, if any, made in this behalf under this Act, to demarcate areas for protection of water sources and to declare the same as protected area ; and

(c) to amend or cancel any declaration made under clause (b).

(2) The State Government may, while exercising powers under sub-section (1), give preference to the persons or village communities whose rights in respect of water have been abolished under section 3.

Power of the State Government to construct water channels etc.