The present study was undertaken to analyze the optimum extraction of groundwater in watershed areas for sustainable use. There was lack of efficient irrigation facility is the major cause for low agricultural productivity in Karnataka due to its over exploitation is leading to continuous decline in the groundwater table. The study was followed purposive random sampling for selection of micro-watersheds and based on the primary data all groundwater irrigated farmers of respective micro-watershed areas were interviewed. A sensitive analysis was carried out to know the groundwater used for optimal as well as sustainable patterns of groundwater management. The results showed that in study area, cropping intensity of Kavalakeri-4 and Ryavanki-1 micro-watershed area was about 160.25 and 157.52 per cent respectively. And Chattar-1 and Kumarkhed micro-watershed area was about 148.45 and 118.48 per cent respectively. The optimal groundwater usage for major crops showed that there was higher groundwater usage than required in crops like chilli, sugarcane, maize in micro-watershed areas of Koppal and redgram, onion, bajra in micro-watershed areas of Raichur district. By optimizing the existing water usage for major crops can reduce the overuse of groundwater indicating the sustainable management of groundwater in micro-watershed areas. Strategies for groundwater usage and optimum extraction must be based on adoption of cropping pattern, modern irrigation approach, rainfall and other agro climatic conditions for sustainable use of groundwater to improve livelihood of the farmers. Hence the government policy needs to be oriented towards these to motivate farmers to adopt micro (drip & sprinkler) irrigation. In addition, it is essential to promote irrigation literacy to enable farmers to use water efficiently.