The Public Health Engineering Department was established in 1927 to provide safe drinking water and sewerage facilities in Uttar Pradesh. In 1946, it was renamed the Local Self Government Engineering Department (LSGED). Later, in 1975, it was transformed into the Uttar Pradesh Jal Nigam (Rural) under the Uttar Pradesh Water Supply and Sewerage Act, 1975 (Act No. 43, 1975).

Under this Act, the Jal Nigam was granted jurisdiction across Uttar Pradesh, excluding Cantonment areas. The primary purpose of establishing this corporation was to oversee the development and regulation of water supply and sewerage services, along with related matters.

Initially, the Uttar Pradesh Jal Nigam (Rural) had authority over both rural and urban areas. However, for improved management and supervision of its schemes, the Uttar Pradesh Water Supply and Sewerage (Amendment) Act, 2021, came into effect on August 24, 2021. This amendment divided the former Uttar Pradesh Jal Nigam (Rural) into two entities: Uttar Pradesh Jal Nigam (Urban) and Uttar Pradesh Jal Nigam (Rural).

The restructured Uttar Pradesh Jal Nigam (Rural) now operates under the jurisdiction of the Namami Gange and Rural Water Supply Department of the Uttar Pradesh Government, focusing exclusively on the rural areas of the state.