In Jumla, a Himalayan district of Nepal, apples of low quality and productivity are a key challenge; this results from the severe shortage of soil moisture during the crucial phenological stages of apple growth. Recently, prolonged dry spells, reduced snowfall and increased temperature in mountain regions have resulted in shortened winters, early snowmelt and increased water stress for crops. To address these problems, in this on‐farm study, we evaluated the effectiveness of snow harvesting for irrigation during the crucial phenological stages of apple growth and mulching to increase water productivity. Quality, productivity and premature fruit drop of apple trees grown using snow harvesting and water productivity practices were compared with those of trees grown using a percolation pit and rainfed agriculture. Moreover, we performed a cost–benefit analysis to build investment confidence. Snow harvesting and water productivity practices improved fruit productivity and quality and prevented premature fruit drop. Using these methods, net income was increased by approximately 2.47 times of that generated through rainfed agriculture. Thus, snow harvesting and water productivity practices appear to be economically feasible, accessible and affordable methods that may help address climate change‐related challenges (drought and water stress) in mountain agriculture.