Natural disasters such as earthquakes, floods, typhoons, and hurricanes inflict serious damage and so seem to be bad for the economy. For firms, natural disasters destroy tangible assets such as buildings and equipment as well as human capital and thereby deteriorate their production capacity. These adverse impacts may sometimes be fatal to the firms and result in them being forced to close down.But the academic evidence on the economic impact of natural disasters is mixed. More than 9,000 people have lost their lives and more than 23,000 are injured till date. After shocks from these earthquakes have continued till date.Water resources are sources of water that are potentially useful. Uses of water include agricultural, industrial, household, recreational and environmental activities. All living things require water to grow and reproduce.Thousands of people indisplacement sites / temporary tents were without basic water supply and sanitation services immediately after the earthquake.Destruction of water system sacross 14 districts left around 1.1 million people without access to protected water sources 1,570 water supply systems sustained major damage while 3,663 were partially damaged and 220,000 toilets were rendered unusable in the14 most affected districts.Hydropower or water power is power derived from the energy of falling water or fast running water, which may be harnessed for useful purposes.The earthquake is reported to have damaged 14 hydropower projects resulting in 115MW Hydropower generation facilities being severely damages and 60MW partially damaged (NPC).Other under construction hydropower projects of 1000MW capacity were also affected.The overall energy sector sustained losses worth Rs18.75billion.Water pollution is the contamination of water bodies.Water pollution affects the entire biosphere of plants and organisms living in these water bodies, as well as organisms and plants that might be exposed to the water.Decaying bodies of the deceased humans and animals, their mass cremation, ,septic failure, and cross-contamination of the sewer lines with the drinking water distribution systems could impact surface and groundwater quality, thus increasing the risk of water-borne illnesses post-earthquake.Toxic chemicals released from households and industries will be soaked into the soil and will eventually end up in ground water or rivers, contaminating drinking water sources of millions of people.Real natural events can and do have serious negative short-run monetary effects. Disasters likewise seem to have unfavorable longer-term results for monetary development, advancement and destitution decrease. In any case, negative effects are not inescapable. Defenselessness is moving rapidly, particularly in nations encountering financial change quick development, urbanization and related specialized and social changes. Considering Earth as a whole, the year 2011 had the highest economic losses due to earthquakes on record. It also had the highest economic losses due to natural disasters overall on record, mostly because of the 9.0-magnitude Tohuku earthquake and resulting tsunami in Japan in March 2011. The earthquake, which is said to be the most powerful ever in Japan, was more a signal of what was coming next: an unexpected tsunami. The quake occurred at the time when the world’s third largest economy (after China and US) was doing good in recovery .Obviously the damage was enormous especially for Japan. Firstly, it is an island. Secondly, it is considered one of the world’s leading technological countries. A significant number of dead, missing, homeless and evacuated people, the risk of the nuclear plant explosion, collapsed buildings, the closure of plants and many other damages have had their own effects not only on Japan, but also on the world. These effects are more visible in the economy. The reason is simple: today’s world is becoming more and more familiar with Globalization, the process by which regional economies have become integrated to a global economy.Unfortunately the earthquake hit the home of auto manufacturing and semiconductor factories, destroying not only the factories but also the raw materials leading to a suspension of the working process in many autos manufactures such as Toyota, Mitsubishi and Nissan. A large responsibility for the reconstruction cost will be on the shoulders of local authorities and government, which lately has been struggling to recover its public debt figures.Besides the public debt concern, Japan has to face its currency (Yen) problem. It is often claimed that a strong currency is an indicator of a good economy. Actually the truth is that a strong currency has a bad impact in exports and it damages the ability of the exporter to compete in world market. Certainly trading is one of the major effects of earthquake and tsunami in world’s economy. Considering the disruptions in Japanese manufacturing activities, the impact on international supply chains could also be considerable. This is particularly important in industries such as autos, telecommunications, and consumer electronics. However, the effects are unequally spread and it is pointed out that they may also be limited.Natural disasters cause noteworthy budgetary weights, with both barely financial here and now impacts and more extensive long haul advancement suggestions. Reallocation is the essential monetary reaction to debacle. Disasters have little effect on patterns in all out guide streams.Fatalities and injuries caused by natural disasters can impact businesses even more than the infrastructure and economic damage. Helping affected employees to recover for their own wellbeing as well as that of your business can be just as important a part of disaster planning and recovery as making sure that your insurance cover is appropriate.And then there’s the potential impact on your supply chain.Major disasters have the potential to disrupt economies far beyond the local damage to infrastructure, as businesses around the world can find their supply chains and markets hit in the aftermath. There’s hardly a business or consumer who doesn’t rely to some extent on goods and services from other parts of the world and all parts of the world have different levels of natural disaster risk.