Hydrogels are physically or chemically cross-linked hydrophilic polymers with high water retention capacity. Chitosan is one of the highly sought biopolymer hydrogels in various research applications due to its biocompatibility, biodegradability and non-toxicity. It has a strong affinity for water due to active amino groups and hydroxyl groups, which enables it to form hydrogen bonds with water. Thermomechanical characterisation has been done using nanoindentation technique to obtain the temperature dependent mechanical property (E and H) of chitosan film. Result indicates the presence of three different stiffness and hardness regimes. This is ascribed to the release of different water types namely free water, freezing bound water and non-freezing bound water from the polymer matrix. The activation energy calculated from TGA further supports this postulation. Dielectric relaxation spectroscopy (DRS) is done to study the effect on different water types on the chain dynamics of chitosan polymer. Two different relaxation peaks, β and σ are observed at lower and higher temperature respectively. Moreover, the signature of different water types is also seen in the DC conductivity plotted as a function of temperature. This corroborates with the results obtained from nanoindentation and TGA on the mechanical response and relaxation behaviour of the hydrogel in presence of different water types.