A study was conducted in four villages of Dharwad and Belgaum districts con­sidering marginal farmers, small farmers and big farmers numbering 240, to study the knowledge possessed by them on watershed development. The overall knowledge index of farmers on watershed development was 31.97. Majority of the farmers had moderate knowledge on watershed development (70%). Significant association was observed between farmers' education and their knowledge on watershed development and soil conservation. It was found from the study that still there is a wide knowledge gap among the potential farmers for which, appropriate extension educational activities have to be organised by the project implementing staff.