This paper applies a multiple indicators-based Water Poverty Index (WPI) framework to assess water poverty situation in the selected river basins in Nepal that cover 8.7% of the territory, produce 6.5% of the water resources and provide shelter for 23.1% of the population. The study results suggested a priority order of the study basins for water poverty situation improvement as West Rapti, Babai, Bagmati, Kamala and Kankai. Even in the basin with the highest water poverty situation (i.e., West Rapti basin), suggested priority order for the areas of intervention need is Use > Environment > Capacity > Resources > Access. The results demonstrated usefulness of the WPI to prioritize areas and extent of policy interventions need at different locations.