The Paper gives an overview of the importance of the river development for the sake of economic and ecosystem development of the country. Water is central to the way of life in Bangladesh. Indeed, the river systems, many of which emanate from outside the country, have shaped much of the history, economy, literature and rich culture of the people. Basin planning provides the most rational basis of development of water resources under the influence of one or more major rivers. International river basins however, such as the Ganges basin, the Brahmaputra basin, and the Meghna basin present special problems. Due to its location as the lower-most riparian, Bangladesh has no control over the rivers entering through its borders. The adverse effects of this are the floods and water scarcity, which occur frequently. A realistic assessment is needed for actual institutions and government effectiveness in the water sector for river basin development. In establishing an effective regulatory framework, institutional restructuring, strengthening and technical training will be key factors.