Ghodegaon waterhsed located in Aurangabad district of Maharashtra state was developed under National Watershed Development Programme for Rainfed Agriculture (NWDPRA) in the 8th five year plan. This watershed has been selected for research study concentrating on quantification of effect of conservation measures on farmers economy. Socio-economic survey was conducted for impact analysis study. Data on meteorological parameters, cropping pattern, inputs and occupation were collected and analysed for pre and post development stage. The change in cropping pattern, increase in yield level, increase in input use are the good indication of development. Due to availability of water in the area, the yield of cash crop has considerably increased. There is considerable increase in per capita income from Rs.6767 to 11110. Increase in productivity might have resulted due to technological changes including mechanisation of different agriculture operation, use of chemicals, fertiliser, pesticides, irrigation potential and improved varieties of seeds.