The eastern Pokhara Valley receives irrigation water through a canal running from a reservoir by the Seti River in the north of the city. Phewa Lake is also used for commercial fishing. The tourist area is along the north shore of the lake (Lake Side and Dam Side). It is mainly made up of little shops, little hotels, restaurants and bars. The larger hotels can be found on the southern and south-eastern fringes of the Pokhara city, from where the view of the mountains, mainly Mt. Fishtail is seen best. To the east of the valley are few smaller and few bigger lakes, the largest being Begnas Tal and Rupakot Tal. Begnas Tal is also known for its fishery projects.
Phewa Lake was slightly enlarged by damming. It is in danger of silting up because of the inflow during the monsoon. The outflowing water is partially used for hydro power. The dam collapsed in the late 1970s and it was rebuilt by the Chinese. The power plant is located about below at the bottom of the Phusre Khola gorge.