The benefits from the Gauli Palasia Micro Watershed were assessed in terms of efficiency, employment and sustainability. It was noted that the Gauli Palasia Micro Watershed has contributed in raising income, generating employment and conserving soil and water resources. The farmers were grouped under three size-group, viz., small (less than 2.0 ha), medium (2.01-4.0 ha) and large (4.01 ha and above) farms. The data were collected by survey method during the agricultural year 2004-2005. The net income on crop production on average were calculated at Rs. 20318.69/ha, respectively in impact survey year 2004-05 as compared to Rs. 8039.80, in bench mark survey year (2000-01). The average input-output ratio of soybean, potato, wheat and gram were calculated as 1:1.93, 1:1.68, 1:2.59 and 1:2.22, respectively in impact survey year 2004-05 as compared to 1:1.54, 1:1.56, 1:1.40 and 1:1.53 in bench mark survey year (2000-01) farms. The returns on per rupee of investment of these crops were higher in impact survey year 2004-05 compared bench mark survey year (2000-01). Input-output ratio at respective levels had given the right indications that the impact of Gauli Palasia Micro Watershed was significantly higher on small, medium and large farms by growing soybean, potato, wheat and gram crops. Gauli Palasia Micro Watershed was helpful in increasing yield, income and gainful employment. The lack of effective coordination among project officials, agriculture extension department, agriculture research station and farmers near the study area is a constraint in the adoption of watershed technique

Keyword: Watershed development; Ec