The project aims to provide adequate piped water supply to all six townships of Naypyitaw and enable 100% water supply coverage to the urban population of the capital city by year 2030. In 2015, a Master Plan was prepared that identifies the site location, treatment type, pipe alignment and other technical requirements.

Currently, the Naypyitaw water supply system provides 15 million gallons per day from 10 dams, including the Chaung Magyi reservoir, for four out of eight of the townships. The four other townships – including the old townships of Pyinmana, Lewe and Tatkon – are not served by a piped water supply system. Moreover, the inflow from reservoirs and the present water demand are at nearly the same level so water supply from current sources will soon be insufficient. It is also expected that water shortages will occur due to climate change. Hence, the Paung Laung River will be added as a new water source for Naypyitaw