how to convert water data from attached cad file to GIS with projection
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+62- Celebrity
It looks like the data is in a local coordinate system, so unless you know how that relates to a geographic coordinate system you're out of luck with regards to the projection.
The rest of the process itself is simple, generate a workspace from DGN to whichever GIS format you want. Every DGN level will end up being a "layer" in GIS (terminology might differ from format to format)
+11- Safer
Hi @adnan_abbasi,
Supplementing redgeographics' answer, we have some resources that might be helpful for this project, including a tutorial on taking CAD to GIS, which converts from DGN to Geodatabase. There's also a few more articles under the tutorial Microstation Transformations if you're interested to take a look there as well. As for the coordinate system, if you know what it is, you can try the CoordinateSystemSetter, and if you need to reproject it, a Reprojector transformer would be a good one to check out.