The management of catchment areas has the goal, firstly, to assess the water system and subsequently develop measures to sustainably use water and soil resources and protect the land from degradation. Furthermore, it also includes integrated resource management and land protection in order to improve and enhance health and quality of life of the local communities.

Participatory community watershed managementfrom the beginning involves local farmers, other land users, and the wider community in the process. The following are important features of the process:

A single household is a unit too small to efficiently manage a watershed. Watershed management is the duty of at least a whole community, if not a higher administrative unit. Watershed management can even be done for a whole country.
Appropriate sizes of watersheds to be managed within a community are with some exceptions between 200 and 500 hectares. In bigger areas, sub-watershed units should be defined and prioritized for key interventions. A community watershed should include:

In the latter case, several sub-watershed plans can be developed and linked one to the other. The links between sub-watersheds are not always obvious and evident. The interactions are not only on drainage and surface runoff but also on land use and socio-economic factors. Thus, in general, overall watershed treatment is required.

Degradation of a catchment area can have various forms: depletion of water resources, soil erosion and land degradation, impoverishment of the vegetative cover, and damage to the infrastructure. Land degradation is responsible for reduction of the vegetation cover. It can be caused by inadequate land management, overexploitation, and reduced soil fertility, but also by climatic factors. A poor vegetation cover leads to a reduced infiltration rate of the water into the soil and to a loss of water through surface runoff. Surface runoff is one of the reasons for the depletion of water resources on the one hand and for soil erosion on the other hand. Most of the surface runoff is not controlled or effectively used and so lost for the community. In order to profit from the rainwater it has either to infiltrate into the soil and be available for crop and pasture production or be intercepted and actively used for different purposes such as drinking water or water for irrigation. Runoff water also leads to soil erosion and further land degradation, which reduce soil depth and fertility, further reducing the vegetation cover. Erosion is enhanced by excessive exploitative use of the land such as the cultivation of steep slopes without conservation measures, shallow soils, inappropriate tillage, overgrazing, encroachment of forests, etc.

Another big problem is the pollution of water with various hazardous pollutants like agrochemicals or microorganisms that lead to diseases in the population that consumes water from a specific watershed. Generally, biologically contaminated water (contaminated with microorganisms) can be treated to get safe drinking water. In contrast, chemically polluted water cannot be regenerated. Thus, prevention of pollution and, hence, the protection of the water quality, is crucial within a watershed.

This vicious circle of land degradation, erosion and depletion of water resources can ultimately lead to desertification and disappearance of the potential of the land to sustain life and livelihoods.

Water harvesting is one of the key elements of watershed management, playing a key-role in improving people's livelihoods through providing opportunities for income generation, restoring and enhance land productivity, supporting the rehabilitation of degraded lands, enhancing the development of natural resources, and contributing to small-scale infrastructure development.

A well managed and protected catchment area provides its population with a sustainable source of safe drinking water. Common waterborne diseases like Amobiasis, Schistosomiasis, Cholera, etc. can be prevented by the use of safe drinking water from a sound watershed, if needed in combination with specifically applied treatment methods.

Current trends of land degradation rates indicate a clear need to conserve and protect watersheds. Rehabilitation of degraded areas is essential for exploiting the water harvesting potential of the area, to protect and enhance the productivity of cultivated areas and to increase overall biomass for multipurpose uses.

Forests contribute to a healthy watershed in multiple ways. More forests mean a better access to firewood, forage, fruits, timber, dyes, gums, and forest related activities like bee-keeping. But forests should not be monocultural. Stable, productive and resilient agricultural systems are highly diversified. Hydrology and the access to water heavily depend on composition and extent of forest coverage as well as the status of revegetated areas.

Soil erosion and lack of vegetative cover seriously affect the road network. With an effective watershed management, road networks will benefit most of all in fragile and steep terrains.

Taking advantage of the multiple benefits generated by water harvesting and moisture conservation, an increased productivity and diversity of crops, fodder and trees can be reached and the household income can be significantly improved. New income sources can be found in the process of watershed planning, for example production and marketing of new crops or other activities like tourism.

Participatory catchment area development has the potential to resolve conflicts during planning and implementation through building the assets base of farmers and generating a wide range of new opportunities and benefits.

Several approaches and methodologies are being used to assist rural communities in rehabilitation of their existing water projects as well as construction of new ones. A common objective for all approaches is that the communities should be able to maintain and operate their water projects themselves.

1. Formulate and present a Project Document to the Danish Embassy and MoWI and obtain a contract and funds for implementation of the projects.

2. Present the approved Project Document to the District Commissioners' offices in the two districts and obtain their approval and cooperation.

3. Contract registered engineers to carry out surveys, designs and bills of quantities of the 6 water projects.

4. Contract two Community Trainers who explain the components and methodology of the water projects to the community in their vernacular.

5. Obtain the communities' approval and contracts for supply of local labour and building materials to be paid in cash for half of the market price, while the other half amount was credited to the communities as their cost-sharing towards the construction costs.

6. Interview and employ some 25 young women to be trained in store-keeping and payment vouchers for procurement of local labour and materials.

7. Interview and contract some 50 local builders to be trained as contractors while assisting experienced contractors hired for the construction works.

8. Contract some 400 female and male community members in equal numbers to be trained in masonry, pipe-laying and other construction works while assisting the hired contractors in their works.

9. Assist the 6 project committees to be registered with the Social Development Department and assist with training 120 committee members in the operation, maintenance, repair and financial management of their projects.

10. Obtain quotations on building materials and transport from at least 3 hardware shops and transport owners as well as procure the required materials inclusive transport to the project stores.

11. File all receipts and enter them in the columns of Word Excel (as required by a contracted Certified Public Accountant, who produced quarterly Financial Reports to Danida).

The 6 project committees went for a second week of training shortly before completion of the construction works to learn how to make their water projects sustainable and economical viable.
The most important issue to be discussed and agreed upon was:

Two scenarios must be considered before answering that question because:

a) If the water is too cheap, the income from selling it will be less than the cost of operating the project and the project will therefore stop operation due to bankruptcy.

b) If the water is too expensive, many people may not afford to buy and the project will stop due to insufficient income to pay for the operation costs.