Loss of water in canals should be minimized to its lowest level for efficient use of water and better functioning of canals. Seepage losses is also a kind of wastewater from the canal. Seepage losses in the canals can be directly measured or predicted by formulas. In practice, it is impossible to create seepage losses by pooling method in large canals because the width of large canals is very large and the water flows continuously. The outflow inflow method is not suitable for small reach of the canal as there is no visible loss in small reach and we need to have sufficient information for the method of seepage meter. This study uses the Inflow outflow method to measure Seepage losses in the Zahir Shahi canal. The selected reach in the Zahir Shahi canal is divided into two sections and the amount of seepage wastage will be found in each section. The amount of losses in the first section is ((0.2664m3 /750m)/sec and in the second section it is ((0.178m3 /750m)/sec) and average of losses is ((0.2222m3 /750m)/sec). In order to prevent seepage losses in the Zahir Shahi canal and to increase the efficiency of water transfer, the canal should be covered.