Contamination of water (in lakes in the vicinity) was a challenge that the project was facing. NICE had entered into an agreement with Bangalore Water Supply and Sewerage Board
(BWSSB) for use of more than 150 MLD of water which was 1/4
the of the amount of the water supplied to Bangalore city. Thus, the project was expected to adversely affect supply of water to the city. In addition, there were ongoing disputes on the Cauvery river water between Tamil Nadu and Karnataka.
BMIC was expected to receive 85 MLD of waste water free for non potable use, depriving farmers who used it for various agricultural purposes. This decision was also a region with extensive irrigation network based on the River Cauvery basin.
In January 2008, BWSSB decided not to permit NICE to shift water and sewerage lines into four locations as it could have affected the water supply and sanitation in the city. Shifting of the pipeline was essential for the completion of the alignment in the prevalent form. In spite of repeated request from NICE, the pipelines were not shifted stating technical opinions. On 24 January 2008, the High Court of Karnataka directed the BWSSB to shift the water and sewage pipelines in four locations so that NICE could complete the peripheral road, which was part of the BMIC project.