Investigation carried out to analyze the effect of management factors on the impact of watershed development programme in 13 district watersheds of five agro-climatic dry zones of Karnataka state revealed that marginal productivity and undulating topography of drylands were the major constraints. The beneficiaries expressed poor soil fertility (65.63%), poor resource base of the farmers (61.25%) and requirement for high level management (60.62%) as the main barriers to improve their performance while officers incharge of watershed development programme felt that land ownership rights, fragmentation of holdings, religious sentiments, social values and overall reluctance of the people for change (94.23%) and non-availability of suitable technology for resource poor situations (89.42%), act as major constraints for the development of watershed.