Water transport is the cheapest and the oldest mode of transport. It operates on a natural track and hence does not require huge capital investment in the construction and maintenance of its track except in case of canals. The cost of operation of water transport is also very less. It has the largest carrying capacity and is most suitable for carrying bulky goods over long distances. The primary goal of this study was to investigate the unique characteristics of inland waterways transportation in Bayelsa and Rivers state. The research method adopted here is the descriptive survey method. A total of 150 copies of the questionnaire were produced and distributed across the selected communities in the two states, with 75 copies of the questionnaire meant for each state. The findings from the study showed that there is a high traffic in Rivers state more than Bayelsa state. Field investigations revealed that inland water transport, especially in the deltaic areas of Rivers and Bayelsa state plays a key role in rural development. The study recommends that government should encourage private investment in the river transportation system by giving soft loans to the people as a means of empowerment and Job creation. Also, Modern boats for river transportation should be introduced to these estuarine communities for rapid movement of cargo and passengers to their destinations.