The present study emphasize on the adequacy and advantage of remote sensing and GIS-based techniques to identify and assess the resource potential zones in Takoli Gad Watershed, India. Different thematic maps like elevation map, drainage map, soil map, geology map, slope map, rainfall map and land use/land cover map have been prepared using ASTER DEM, LISS IV and SOI topographical maps and suitable secondary data. The present study aimed to investigate various morphological characteristics by measuring linear, areal and relief aspects. The morphometric characterization indicate dynamic role in distinguishing the topographical and hydrological behaviour of the watershed. A composite map of the Resource Potential Zones was developed by integrated different thematic maps and morphometric characterization data base. In this study, geographical information system (GIS), remote sensing, weighted overlay analysis and analytical hierarchy process (AHP) methods have been used for mapping of available natural resources in the Takoli Gad watershed. The overlaid based on analytical hierarchical process weightage prioritization at a constituency ratio of 0.095. The resource potential zones categorizes into the excellent (1.59 %), good (25.61%), moderate (45.21 %), poor (26.41 %), and very poor (1.18 %) zones. The present study helps in the sustainable management of water, agriculture, forest and other natural resources to meet the basic minimum needs of people, and improve their socio-economic conditions. Decision and policy makers can use the information gathered from such case study for long term development plan of watershed.