The paper briefly analyses the impacts of climate change on water resources in hilly areas of Nepal. The study was carried out on three water supply systems from every two districts in different places. A tool was used to focus group discussion with the community dependent on the water supply system. Their experience in relation to climate variability or change over time was collected and analyzed. Secondary data obtained of precipitation and temperatures were also analyzed. Drying and depletion of spring water sources and frequent climate-induced hazards are caused due to changing rainfall patterns and temperature regime, which may be the result of climate change. Water scarcities have multiple impacts on the living condition of people, and adaptive capacity of local people in this area is very low which increases the vulnerability. Finally, it was explored that there is a need for future planning and management of water resources resilient to the climate change.