Capnet Nepal has been launched on March 25, 2004. Forty-five representatives from government, non-government, international organizations, and including water and environment experts participated in the first meeting to launch the network organized in Kathmandu. Ajaya Dixit, the Director of Nepal Water Conservation Foundation welcomed the participants and explained the need to have a network of all engaged in water management. He then summarized the water management issues primarily that of drinking water, irrigation, floods and landslides, and international water sharing and then focused on the problems of governance, technology, social dimensions of water and highlighted the strengths that Nepali organizations have in their respective fields. Participants expressed their perspectives on the need for collaboration among various organizations in order to build capacity of their organizations. At the end of the meeting a core-group of eight organization was set up to operate the network. The core-group members include, Nepal Water Conservation Foundation (NWCF), Department of Electricity Development (DED), Department of Irrigation (DOI), Nepal Water Supply Corporation (NWSC), National Federation of Irrigation Water Users Association, Nepal (NFIWUAN), Federation of Community Forest Users Groups, Nepal (FECOFUN), Federation of Water and Energy Users Association (WAFED), and International Centre for Integrated Mountain Development (ICIMOD).

It was agreed in the meeting that the gist of the discussion be circulated to the participants soliciting comments before a second meeting which will be held in three months. A briefcase will be maintained to share information among the network members. Environment Nepal, an organization advocating clean environment has extended support to help maintain the briefcase.