The overexertion and excessive use of groundwater depletes this precious resource. The governments are trying to tackle this challenge using various options. To develop and implement the groundwater rights is one of the important options. The objective of this study is to make a situational analysis of groundwater laws and the willingness of the residents on the implementation of groundwater laws in Islamabad. Moreover, the study also evaluated the cost borne by local residents due to the absence of groundwater laws. To achieve the objective of the study, primary data was collected from the local residents through questionnaires. The primary data were analyzed through descriptive statistics. The information about groundwater laws in other countries was obtained from the available literature. This study concluded that the implementation of the groundwater laws were lacking in the study area suffering the local residents. The local residents showed willingness for the implementation of groundwater rights. The study recommends that appropriate groundwater rights should be developed and implemented by the government and local water authorities to tackle the water scarcity issue in the area. Supervisor:- Dr. Anwar Hussain