The policy will be implemented for a period of 30 years in all the district headquarters and cities having population of over one lakh, Parliamentary Affairs minister Rajendra Rathore told reporters.
The Cabinet chaired by chief minister Vasundhara Raje also decided to commence the second phase of Mukhyamantri Jal Swavalamban yojna from November 16, he said.
The second phase of the programme, under which works are done to create water conservation structures, will cover 4,200 villages.
The cabinet also cleared proposals regarding customized package to some of the companies which entered into MoU with the state government during Resurgent Rajasthan held last year.