Abstract: “The increasing urban demand for water and insufficient urban water sources impose its sources expanding towards the peripherals and adjoining villages called peri-urban villages created the marketing mechanism. This is due to inadequate water supply provided by the government authorities. The rapid commercial and industrial establishments, degradation of water resources both surface as well as groundwater in the southern part of city faces severe water shortage. This leads to emerging informal groundwater market from the southern-peri urban villages. The prevailing peri-urban groundwater transfer for urban uses results in depletion due to overdraft and it impacts not only the peri-urban sources but the water rights and livelihoods of the peri-urban poor. This continual extraction causes insecurity and equity issues related to water in the peri-urban villages. This paper describes the existing water management scenario of Chennai Metropolitan Area and the various inequity and insecurity”

Keywords: Peri-Urban, Groundwater transfer(Water market), Groundwater, Equity of Water, Governance