The overall performance of watershed development fund programme in Seventhipatty & Vadavathur watershed villages in Namakkal district. HEALDS takes responsibility to facilitate the VWC activities in that villages. The Impacts of watershed development in Seventhipatty & Vadavathur villages have been outlined in terms of bio-physical impacts, environmental impacts, socio-economic impacts and overall economic impacts. It is pointed out that the watershed development activities have made significant positive impacts on various bio physical aspects such as soil and water conservation, soil fertility, soil and water erosion in cropped area, changes in cropping pattern, cropping intensity, production and productivity of crops. Watershed development activities have shown significant positive impacts on water table, perenniality of water in wells, water availability for cattle and other domestic uses, etc., As per the external evaluator’s feedback on people’s participation in watershed development activities has been found satisfactory but the optional level is yet to be achieved. Training of farmers has been found effective in dissemination of technical knowledge.