This study been conducted to know the performance of the preparatory phase of the Integrated Watershed Management Program (IWMP) in the 24 districts of the state of Tamil Nadu. The IWMP made an attempt to bring together the ideals of natural resource management and rural development through a decentralized, people driven participatory approach. This has been implemented by conducting intensive ground level individual household surveys, village level meetings and using participatory techniques. An attempt is made an analysis of the performance of the programme in the preparatory phase in terms of no. of projects, area covered and funds released by the Government of India and the successful implementation of the programme. As concluding remarks, the findings of the study showed a positive link between watershed management and sustainable development in the project areas.