In this paper we present two type of real time water velocity measurement system, first contact type water velocity measurement and another is non-contact type water velocity measurement system. In contact type, Hall Effect water flow sensor is used as a sensing unit, as water flows through that sensor, it gives corresponding pulse signal, By counting number of pulses from the output of the sensor, it will be calibrated using Arduinouno board to find the water velocity. Non-contact type velocity measurement system is based on video processing based optical flow technique. The optical flow is estimated from consecutive frames from which displacement is calculated through sparse optical flow algorithm such as pyramidical Lucas-Kanade approach. The results for Non-contact type technique shown in the paper are calculated using CMOS camera on thecanal near Khadkwasla Damp at Pune. © 2015 IEEE.