
Watershed is powerful tool of socio-economic development ensuring sustainable rural development. Natural resource management leads to livelihood security through agriculture and allied activities. The rain-fed agricultural production can be improved by adopting ridge to valley watershed approach. Chartha-Selud watershed project is a unique example of watershed programme of run by various departments of government. The present study evaluates the socio-economic and environmental impact of watershed program on these villages in comparison with neighboring villages Hatmali and Naigavhan. The watershed program in these villages partially fulfills the objectives of sustainable rural development. There is increase in agricultural productivity and water availability. The watershed program had an impact on the cropping intensity, crop diversification, land use pattern etc. There is more adoption of cash crop and perennial fruit crops in watershed villages with support of micro-irrigation and farm ponds. There is not any significant difference in livestock population, use of farm implements and transport and communication means.