The land resources of the Chhattisgarh state especially its dry drought prone lands, have been poorly managed by the poor farmers of the state. Soil loss due to erosion coupled with reduced water resources has led to a situation of rapid soil fertility deterioration, declining/stagnating of crop yields, depletion of ground water levels, deforestation, denudation and destruction of natural pasture. Exploring the full potential of rain fed agriculture to meet the food, fodder and fuel requirement of the state population, is the only alternative, however, this will require investing in suitable soil and water conservation technologies, crop breeding targeted to rain fed environments, agricultural extension services, and access to markets, credit and input supplies in rain fed areas. The potential for increasing the irrigable area and enhancing productivity from irrigated lands has its limitations. The remaining land has to depend on rain fed farming forever. There-fore if the state has to conserve and develop natural resources in rain fed areas to improve their production and productivity, their development on watershed basis is inevitable.