Thakal grass. - - Shivapuri Integrated Watershed Development Project: GCP/NET/049/NET. Shivapuri is one of the main sources of drinking water for the densely populated Kathmandu. It experienced several problems of soil erosion as a result of deforestation, overgrazing, cultivation on steep slopes etc. reducing quality and quantity of water supplied from the area. To overcome these problems the Nepalese Government initiated a programme to protect Shivapuri as a watershed and wildlife reserve. In 1985 the Shivapuri Management & Fuelwood Plantation Project was launched with the financial support of the Norwegian Government through the Food and Agriculture Organization of the United Nations (FAO). Last year the project was continued by the Shivapuri Integrated Watershed Development Project for a new five year period. Most of the construction and plantation works in the reserve have been completed and the emphasis is now on combatting local people's loss of income through the sale of fuelwood from the forest and the introduction and improvement of several income generating activities such as cultivation of fruit trees, vegetables, mushroom production, bee-keeping.