Agriculture and livestock production in the state of Rajasthan remain severely affected by frequent droughts. Inadequate rainfall, extreme temperatures, poor quality of land and groundwater further restrict the crop and livestock choice of farmers in the region. High population growth and poor infrastructure further aggravate the problems of resource-poor rural people. Faced with low productivity and high uncertainty in crop production, rural people depend for their livelihood heavily on CPR-based livestock rearing, particularly of small ruminants. Nevertheless, the quality and quantity of common property resources (CPRs) as source of feed and fodder have been severely depleted. As a result, the livelihood security of the rural people of arid region of Rajasthan is under threat. An attempt has been made to analyze the goat farmers' coping strategies under water scarcity and changing resource situations and sustainable options of crop-livestock production for their livelihood security in the Nagaur district of Rajasthan by collecting data for the year 2004–05.