Integrated watershed management requires a host of inter-related information to be generated and studied in relation to each other. Remote sensing technique provides valuable and up-to-date spatial information on natural resources and physical terrain parameters. Geographical Information System (GIS) with its capability of integration and analysis of spatial, aspatial, multi-layered information obtained in a wide variety of formats both from remote sensing and other conventional sources has proved to be an effective tool in planning for watershed development. In this study, area and locale specific watershed development plans were generated for Mayurakshi watershed, India using remote sensing and GIS techniques. Adopting Integrated Mission for Sustainable Development (IMSD) guidelines, decision rules were framed. Using the overlay and decision tree concepts water resource development plan was generated. Indian Remote Sensing Satellite (IRS-1C), Linear Imaging Self Scanner (LISS-III) satellite data along with other field and collateral data on lithology, soil, slope, well inventory, fracture have been utilized for generating land use/land cover and hydro geomorphology of the study area, which are an essential prerequisites for water resources planning and development. Spatial data integration and analyses are carried out in GIS environment.