Demanding implementation of the Kalasa-Banduri project, farmer groups' on 27 December called for a shutdown in north Karnataka.
Staging protest against the government failing to resolve the issue, protestors took to streets and shouted anti-government slogans.
Agitated they also burnt effigies.
Bus and commercial establishment are also closed between Karnataka and Goa following the ongoing protest.
Security has been beefed up to maintain Law and Order in the state.
The bandh, called by Mahadayi Kalasa Banduri Nala Horata Samanvaya Samiti, an umbrella organisation spearheading the agitation, is being supported by several pro-Kannada and other organisations.
The bandh called in various places like Gadag, Dharwad, Bagalkot, Hubballi, Bailahongala and neighbouring areas.
The state of Karnataka and Goa are at loggerheads on the issue of sharing inter-state Mahadayi river water.
While the river originates from Karnataka, a major part of it flows in Goa.
Earlier, Karnataka Chief Minister Siddarmaiah has called for a meeting with his Maharashtra and Goa counterparts Devendra Fadnavis and Manohar Parrikar respectively "to arrive at a negotiated settlement" over the issue.
The Karnataka has sought the release of 7.56 tmcft water for the Kalasa-Banduri Nala project.