Flood Control and Draining Improvementer has a catchment area of 234.8 km², which is administratively divided into Islamabad, in the upper reaches and Rawalpindi in the lower reaches. During the monsoon season, the floods frequently overtop Lai Nullah and inflict severe damage on the lower reaches of Rawalpindi in particular. The flood in July 2001 caused the worst damage including the deaths of 74 people and the destruction of about 3,000 houses.

To mitigate the effects from flood and to improve the environment, a master plan was formulated. The construction of a community pond and a flood diversion channel were proposed, producing an immediate effect and ultimately freeing Lai Nullah from overflowing. In addition, non-structural plans such as a flood forecasting and warning systems and a flood risk map using IKONOS satellite imaging were formulated.