Laboratory scale Neutron source can be used to activate metal foils and perform experiments related to neutron detection and measurements. The neutron source must be used with utmost care due to its biological hazards. This requires design of facility for optimum neutron moderation and shielding. The calculations are performed to study the required moderation of neutrons using paraffin moderator and water shielding. The simulations are carried out using Monte Carlo based computer program for 0.3 Curie point source of neutrons.