Neermahal literally means Water palace. The palace is a picturesque fairytale royal mention located in the middle of the Rudrasagar Lake build by Maharaja Bir Bikram Kishore Manikya at 1930 A.D as his summer residence being inspired by Mughal style of architecture. Based on that every year in the month of August a big festival observed by the local body and Govt. Department which is called “Neermahal Water Festival”. The festival observed for 3 days and many colourful cultural programme and event play at the evening. A big attraction of the Neermahal water festival is boat race in Rudrasagar Lake. Different kinds of boats are participates in that boat race competition. Apart from that swimming competition also organised in the festival.