A water supply canal having a length of 8.9 km, originating from Durgapur Barrage at Durgapur, West Bengal, India and terminating in a pool at a downstream distance of 8.9 km was constructed by Damodar Valley Corporation during 1957-60 to supply drinking water to the city of Durgapur, West Bengal, India and water to several industries situated at Durgapur. Durgapur Municipal Corporation withdraws its complete demand from this canal of DVC. The major industries withdrawing water from the canal is M/S Durgapur Chemical Limited, M/S Durgapur Steel Plant, M/S Phillips Carbon, M/S Durgapur Thermal Power Station. Though the canal was designed for original capacity of 900 cusecs, but now there is withdrawal of about 400 cusecs only from the canal due collapse of the cross section of the earthen canal at different chainage, silting of the canal throughout its reach resulting in failure of the function of the canal to supply water to major customers. A study was undertaken to assess the present hydraulic and environmental conditions of the existing canal and propose procedure for revival of the canal in the most economic way without disrupting the present withdrawal from the canal and also suggest measures to be undertaken for maintenance of environment along the canal to prevent canal cross section from unlawful ingress of water into the canal. In this study, present hydraulic conditions of the canal have been analyzed. Different alternatives of reviving the canal to carry a discharge of 500 cusecs were attempted by (i) designing pre-cast section of the canal capable of carrying a discharge more than 500 cusec, (ii) simply using the existing cross section with side protection with steel sheet piling and bottom protection with concrete blocks, and (iii) providing diaphragm wall on each side of the section and bottom protection with concrete blocks. Feasibility of construction under conditions of continued supply to the existing stake holders was considered while analyzing the economics of revival for all the three alternatives. Revival of the canal by option (ii) has been recommended on the basis of economics of revival amid running condition of the canal. Though the working life of the canal with sheet pile protected side wall is less than that of the canal with diaphragm wall as the side wall of the cross section but workability under running condition of the canal is much higher for the case of side protection with steel sheet piles. Measures such as diverting the unlawful ingress away from the canal, protecting the side berms with green cover has been recommended to improve the environment around the canal.