Defined as an independent hydrological unit, it is a drainage basin or catchment area of a particular stream or river. In simple terms, it refers to the entire upstream topography around a defined drainage channel, which feeds water to the lands below. A watershed may vary from a few hectares to several thousands of hectares. Any change in the surrounding environment directly affects the people living therein. A degraded environment results in a degraded quality of life for the people. Thus, a programme to reduce poverty and improve the standard of living of the people must be aimed at improving the environment they live in. A watershed provides the best environmental unit for planning a development programme. Watershed development involves conservation, regeneration, and judicious utilisation of natural resources. It aims to bring about an optimum balance between the demand and use of natural resources so that they remain sustainable over time. There is a close relationship between the environment and the human community living within for its livelihood. When the economic condition of a community deteriorates, it leads to over-exploitation and degradation of natural resources. It is necessary for people to understand the relationship between their poverty and the degraded environment they live in. Environmental regeneration is possible only when the concerned people realize a need for it and are empowered to have control over the process of resource utilization, management and conservation. As human beings and their activities are the primary cause of environmental degradation, they can restore the health of the environment they have ruined by resetting their ways and activities towards the environment around. Hence, there can be no sustainable natural resource management unless it involves the participation of all inhabitants of the concerned environment/area in an active manner.