The Indian arid ecosystem is capable of supporting a large population provided the basic input like water. The major source of this basic input is rainfall which is scanty and erratic in Rajasthan state. Looking to the spatial variability in the landform and climatic characteristics of the Rajasthan, the application of the remote sensing and GIS helps in establishing a good database of the recent informations at various spatial and temporal scale. A study was therefore conducted on hydrological modelling of small watershed to prepare strategies for efficient utilization of runoff making use of remote sensing and GIS applications. Harvesting of rainwater and its subsequent utilization assumes prime importance for the sustainable development of the region.