  NGC 1068 is one of the best studied Seyfert II galaxies, for which the
blackhole mass has been determined from the Doppler velocities of water maser.
We show that the standard $\alpha$-disk model of NGC 1068 gives disk mass
between the radii of 0.65 pc and 1.1 pc (the region from which water maser
emission is detected) to be about 7x10$^7$ M$_\odot$ (for $\alpha=0.1$), more
than four times the blackhole mass, and a Toomre Q-parameter for the disk is
$\sim$0.001. This disk is therefore highly self-gravitating and is subject to
large-amplitude density fluctuations. We conclude that the standard
$\alpha$-viscosity description for the structure of the accretion disk is
invalid for NGC 1068.
  In this paper we develop a new model for the accretion disk. The disk is
considered to be composed of gravitationally bound clumps; accretion in this
clumped disk model arises because of gravitational interaction of clumps with
each other and the dynamical frictional drag exerted on clumps from the stars
in the central region of the galaxy. The clumped disk model provides a
self-consistent description of the observations of NGC 1068. The computed
temperature and density are within the allowed parameter range for water maser
emission, and the rotational velocity in the disk falls off as $r^{-0.35}$.
