Summary 1. Diatoms are recognised as indicators in temperate streams, but only recently have assessments begun of their value in indicating stream quality in the tropics and sub‐tropics. Here, we extend previous studies by assessing stream diatom assemblages in relation to water quality and habitat character in the Kathmandu Valley, and in the Middle Hills of Nepal and northern India. We also assessed whether the U.K. Trophic Diatom Index (TDI) was sufficiently portable to reveal pollution in Himalayan rivers. In the more urbanised and highly agricultural Kathmandu Valley, we compared diatom response to water quality classes indicated by a local invertebrate index, the Nepalese Biotic Score (NEPBIOS). 2. Thirty and 53 streams in the Kathmandu Valley (2000) and Middle Hills (1994–96), respectively, were sampled in October and November during stable flows following the monsoon. Diatoms were collected in riffles, water samples taken for chemical analysis, and habitat character of the stream channel, bank and catchment assessed using river habitat surveys. In the Kathmandu Valley, macroinvertebrates were collected by kick‐sampling. 3. In total, 113 diatom taxa were found in the Kathmandu Valley streams and 106 in the Middle Hills. Of 168 taxa recorded, 62 occurred only in the Kathmandu Valley, 56 only in the Middle Hills and 50 were common to both areas. Most taxa found only in the Kathmandu Valley belonged to the genus Navicula while most taxa confined to the Middle Hills were Achnanthes, Fragilaria and Gomphonema. 4. In the Kathmandu Valley, richness and diversity increased significantly with K, Cl, SO4 and NO3, but declined significantly with Al, Fe, surfactants and phenols. Richness here also varied with habitat structure, being lowest in fast flowing, shaded streams with coarse substrata in forested catchments. In all streams combined, richness increased significantly with Si, Na and PO4, but declined significantly with increasing pH, Ca and Mg. 5. Diatom assemblage composition in the Kathmandu Valley strongly reflected water chemistry as revealed by cations (K, Na, Mg, Ca), anions (Cl, SO4), nutrients (NO3, PO4, Si), and also substratum composition, flow character and catchment land use. The commonest taxa in base‐poor forested catchments were Achnanthes siamlinearis, A. subhudsonis, A. undata and an unidentified Gomphonema species; Cocconeis placentula and Navicula minima in agricultural catchments; and Mayamaea atomus var. alcimonica, M. atomus var. permitis, and Nitzschia palea at polluted sites near settlements. Diatom assemblages in none‐agricultural catchments of the Kathmandu Valley and Middle Hills were similar, but they contrasted strongly between urban or agricultural catchments of the Kathmandu Valley and the less intensively farmed catchments of the Middle Hills. 6. In keeping with variations in assemblage composition, most streams in the Kathmandu Valley had higher TDI values (33–87, median = 64) and more pollution tolerant taxa (0–78%, median = 16) than streams in the Middle Hills (25–82, median 4...

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Worldwide, water availability will be a key issue in the 21st century. Per capita water availability is projected to fall from 6600 to 4800 m 3 between 2000 and 2025 because of uneven distribution of water resources. However, most of the world's population will have below 1700 m 3 per capita (Cosgrove and Rijsberman 2000). Mountains, in particular, are of great importance because more than half of humanity relies on freshwater that originates from mountains (Liniger et al 1998; Viviroli 2001). The rising demand for water from growing populations, climate change affecting water supplies , and increased uncertainty in relation to natural hazards (eg, increased occurrence of landslides, glacial lake outburst floods) are some of the reasons for future concern (Kundzewicz et al 2001). In the context of the Hindu Kush-Himalayan (HKH) region with its pronounced monsoonal climate, the following dual concern can be demonstrated by the current status of water-related issues:

Inadequacy and poor quality of water supply for domestic purposes is increasingly becoming a concern in rural catchments of the Middle Mountains of Nepal. Water quantity is an issue in pocket areas of these catchments, while water quality is subject to concern in most of the water sources. Microbiological contamination in particular poses a risk to human health. In addition, sediment pollution during the monsoon season is perceived as an issue by the local residents. Elevated phosphate and nitrate levels in many water sources indicate intensive interaction with surface water hailing from agricultural areas and human settlements. These water quantity and quality concerns in two watersheds of Nepal, the Jhikhu Khola and the Yarsha Khola watersheds, are not isolated cases. Similar problems are reported from other watersheds monitored under the People and Resource Dynamics in Mountain Watersheds of the Hindu Kush-Himalayas (PARDYP) project in China, India, and Pakistan and the literature of this region.