Water security is a key in achieving sustainable development goals (SDGs); however, it is gradually becoming a scarce resource due to pressure from both climatic and non-climatic factors. Understanding sources and extend of vulnerability of the water resources is the very first step to design appropriate strategies aimed at securing water for various uses. This study therefore assessed vulnerability of water resources and its spatial distribution across the Palikas (new local governments) with Gulmi district in Province-5 as the case study. Vulnerability was assessed using an indicator-based framework comprising of two components and six sub-indices. Results showed that Musikot is the highly vulnerable Palika among the 12 Palikas, and Resunga is the least vulnerable. The results are useful for prioritizing the Palikas for allocating resources aimed at targeting new programs for reducing poverty and conserving natural resources.