The Sarju rises at a place known as Sarmul (or Sarmool), which is located in the extreme north of the Bageshwar district of Uttarakhand. The source of the river is situated at on the southern slope of a ridge of the Nanda Kot and is separated on the east from the source of Ramganga and on the west from the sources of Kuphini (the eastern branch of Pindar river) by spurs leading down from the mass culminating at the Nanda Kot peak. It flows initially around in southwest direction by the Kumaon Himalayas where it receives Kanalgadh stream from the right and Punger river from the left. About further downstream, the river receives Lahor river from the right. Then the river turns towards south and flows through the city of Bageshwar, where it receives Gomati from the right.