The social and economic development of the state is interlaced with our natural resources, and the manner in which they are managed and exploited.  The unplanned development and overexploitation of resources are exerting various kinds of land degradation, biomass deterioration and siltation of tanks. In addition, the low per capita availability of land, uncertain and ill-distribution of rains, undulating topography, improper management, traditional cropping programme and recurrence of droughts have cumulative effect leading to low productivity and high risk particularly in dryland farming. Considering this, in India watershed development based on integrated approach has been given importance for sustainable development in the last two decades. The satellite remote sensing imageries from IRS 1C/1D for two seasons representing Kharif (September – October) and Rabi (December – February) and in some cases summer season (March – April) data were utilised for 10 sub-watersheds falling in five districts of Karnataka state to prepare the agriculture and water resource action plans. The geographic information system helps in arriving at alternative action plan by overlaying, integrating and analysing the various thematic maps derived from the satellite data along with the collateral data like socio-economic, demographic, meteorological data etc. Thus, the remote sensing coupled with GIS offers opportunities for integration of multi-layered information (both spatial and non-spatial) that helps in identification of potential limitations and management needs of land and water resources on an integrated basis.