Nation-building refers to the process of constructing or structuring a national identity using the power of the state. Natural resources and technologies associated with it and their use have been an integral part of human life, as old as civilization. The land formed the main ingredients of a natural resource. Pakistan is fortunate because its soils, topography and climate are generally suitable for farming, but its agriculture sectors face the problem of scarcity of water in regions like Multan. The development of irrigation resources was, therefore, one of the major concerns of the Governments who ruled the region. Like other Punjab districts, Multan witnessed the commercialization of agro products and the growth of market towns following the extension of irrigation and communication facilities. However, it was immensely transformed by the Sidhnai Canal Colony system. This paper also attempts to analyze the economics of conjunctive water management practices in Tehsils of Colonial Multan. This research is based on original non published official reports from Punjab Civil Secretariat Lahore and British Indian Library London. The paper is mainly based on archival documentation, settlement and assessment reports and gazetteers.