Sustainability of Agriculture in the dryland agriculture is only possible through management of natural resources as well as the adoption of eco-friendiy practices. The watershed programme was launched in India, which is a dynamic strategy for minimizing risks In fainted agriculture in increasing production as well as stabilising income of farmers. To evaluate the level of Influence of this programme on sustainability of agriculture is a question at large. The present study was aimed to develop a tool to measure the sustainability level in watershed environment. The 10 indicators viz.. crop diversity; land productivity; Input use index, integrated pest management, eco system management , soil environment level: crop productivity; enterprise supporting ability, social equity; and carrying capacity were identified through expert judges and arrived by working out relevancy coefficient and their Intensity in majoring the sustainability through their scale values. These agro-environmental indicators are of much reveleance to  study the sustainability of agriculture In watershed area.