Pointing out the highly unplanned and unbalanced nature of exploitation of water in the Lowr Bhavani River Basin in Tamil Nadu and its extensive harmful impacts, a study has called for making use of effective economic instruments in water resource management and industrial pollution control. In a paper presented at a workshop at the Centre for Water Resources Development and Management (CWRDM) in Kozhikode, Mr. Prakash Nelliyat of Madras Institute of Development Studies said that unbalanced water exploitation is causing havov in lower Bhavani.