The provision of efficient, affordable, reliable and clean energy, drinking water and food to rural people is one key challenge facing Malawi to achieve the Millennium Development Goals, future sustainability and self reliance. However, the current forms of energy used in rural areas are unable to facilitate a wide range of services since the majority of the population still depends on biomass for their energy needs and rainfall for agricultural production. Multipurpose schemes for energy production, irrigation and water supply are known to provide all of these ranges of services. The choice of site for a multipurpose water resources project is based on the close interaction between the various demands within the catchment. It is therefore necessary to establish the inventory of the energy demand and water demand for other functions and the availability of the resources. This paper is focusing oil assessment of the availability of water resource for multipurpose scheme development in the northern highlands of Malawi.