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Completed in 1982, Nepal's first major hydroelectric project dammed the Kulekhani Khola to form a sizeable lake east of Daman at an elevation of 1520m. The Kulekhani Reservoir , more commonly known as Indra Sarowar , is attractively nestled at the base of forested hills, and despite being a very deserving stopover on a couple of different itineraries from Daman, it remains completely undeveloped for tourism. An unpaved but well-graded road leads 13km from the Rajpath to MARKHU , a small new village on the lake's northern shore settled by families displaced by the reservoir. Unfortunately, having been helped by an aid project to start a small-scale fishing industry here, their livelihood is now at risk: the Nepal Electricity Authority is threatening to ban fishing on the lake, after being ordered to pay compensation for a major fish kill apparently caused by its maintenance operations. You can get simple accommodation and food here, though there are no English-language signs. Walking down from Daman, you'll arrive at the western shore, where you can take a boat across to Markhu. From Markhu you can either catch a bus to Kathmandu the next morning or walk another full day to Pharping in the Kathmandu Valley. A second option from Markhu is a one- or two-day trek via Chitlang to Thankot on the Prithvi Highway, from where it's a quick bus ride to Kathmandu. You can also continue on the road all the way around the lake's eastern shore to the dam , and then follow a trail up over the Mahabharat Lek to Bhimphedi via Chisapani Gadhi. Before the construction of the Rajpath, this was the main approach to Kathmandu from the Tarai - visiting dignitaries came this way by elephant and sedan chair - and there's a certain cachet to retracing the route. It's an easy day's trek on foot; it can be done on a bike, but requires some carrying. However, work has begun on a new sixteen-kilometre road that will soon supersede the trail and create a continuous motorable route between Markhu and Bhimphedi. Perhaps the new road link will restore some prestige to BHIMPHEDI , which was an important regional centre until it was bypassed by the Rajpath. Connected to the Rajpath by an eleven-kilometre side road, it's a sleepy Newar bazaar whose only real contact with the outside world is two daily buses from Hetauda. A small museum of howdahs (elephant-riding platforms) highlights one aspect of Bhimphedi's heritage from its heyday. A few local lodges provide bed and bhaat.
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