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Kalimpong is facing an acute drinking water shortage due to prolonged dry winter conditions that have lowered water levels in local streams. Civic authorities plan to request funds from the state urban development department to address the crisis.

Currently, the town receives water supply from the PHE department only three times a week for 30 minutes. The primary water sources, Relly and Thutchuk streams, have significantly diminished, while Newra stream is reserved for military use.

A ₹196.97-crore drinking water project under the Amrut 2.0 scheme has been initiated to pump water from Bhali Khola, a tributary of Teesta. The town's population has increased to approximately 60,000, with a daily water demand of seven million litres, while supply is only about two million litres. A survey for a comprehensive sewerage system is also underway.