Watershed management and development in the country may improve overall living standard of rural poor. The impact of watershed development is favourable under conditions of Indian agriculture. Watershed management research recorded positive remarks on agricultural production, conserving natural resources, farmers' attitudes, employrnent and living standards in the vast arid and semi-arid regions. Participation of local habitats in identification and planning of watershed helps in bringing an improvement in the management of natural resources. As such integrated watershed management will lead to reduce socio-economic disparities between ihe rich and marginal farmers. A cost effective, sustainability and replicability of resource conserving technologies are to be realized through the participatory process of clientale involvement. Supply driven and target oriented top down approaches loaded with subsidies are being replaced by the demand as well as community driven strategies.