A method for production of colorless, non-fuming, hazardless and stable aqua-regia solution is provided. The method includes heating a dry mixture of potassium nitrate, potassium chloride and potassium aluminum sulphate to obtain vapors of aqua-regia and condensing the vapors obtained to form a colorless, non-fuming, hazardless and stable aqua-regia solution. The method produces aqua-regia directly from dry salts without adding any single drop of solvent. Aqua-regia obtained by this method is highly stable and possesses dual property of being an anti-diarrheal as well as a rehydrating compound.