The rivers flowing in Dadra and Nagar Haveli comprise Damanganga river and three of its tributaries that drain the entire territory. Daman - Ganga divides Dagar and Nagar Haveli into two and its three tributaries contribute the watershed that is the part of the area's ecosystem. The River Daman Ganga rises atop the Western ghats and flows through the entire Dadra and Nagar Haveli before it finally falls into the Arabian Sea near the Daman Port. The tributaries flow through the western side and drain the hilly terrain of the UT and drain the entire land of the Union Territory of Dadra and Nagar Haveli. The union territory is dissected by the river itself into two distinct parts.
The River Bhagwan river flows along the Northern border of the Union territory and down south flows the Kalem River. The northern boundary, and the Kalem river running along the southern boundary. The Damanganga flows majestically in the central part of it. The Madhuban reservoir is fed 83.33 Cubic mm of water by this river.
Along their undulating course, these rivers of Dadra and Nagar Haveli give rise to various waterfronts, falls and streams that make for picturesque locations enjoyed by the tourists. One of such waterfront at Dudhani near Khanvel is being developed as a thriving tourist destination where many water sports and other activities are being organized to promote tourism. The landscape formed at these spots are indeed very romantic and beautiful. Trekking trails are also developed along the path of a river for the tourists.