In the present study, two watersheds, viz. Orkkayam watershed in Kannur from the midland region and Panniyancode watershed in Wayanad from the highland region of Western Ghats were selected for the detailed investigation. Various natural resource and production system management activities, livelihood support systems and community organisation activities were carried out in these two watersheds. A set of technical and economic indicators/ indices were used to assess the impact of the programme. The results indicate increased water levels in the open wells, as noticed by 55.5 per cent of the respondents in Orkkayam and 68.2 per cent in the Panniyancode watershed. Similarly, a reduction in peak surface runoff was reported by 75 per cent and 90.5 per cent of the respondents in the Orkkayam & Panniyancode watersheds, respectively. According to the respondents, reducing soil erosion and increasing drinking water availability were the most important benefits. The survey also revealed that the project implementation helped in increasing employment opportunities in the watershed areas. Regarding natural resource management, earthen bunds (76 per cent) are given more importance than rain pits (51 per cent) in the Panniyancode watershed. More than 80 per cent of beneficiaries have adopted and maintained these measures regularly. It is learnt that the water table in this watershed was depleting at a rate of 2ft/year. An increase in groundwater level is a positive impact of the watershed interventions. It could be understood that the water level in the open wells increased considerably, and dependency on other neighbour sources was reduced after the project implementation. Therefore, considerable weightage should be given to groundwater recharge measures and enhanced on-site soil and water conservation in watershed development programmes.