Water being a fundamental constituent of environment and vital for the living beings, sensitivity of water recourses has long-term consequences for mountain ecosystem properties and human societies. However, due to changing hydrological cycle and increasing and competing demands for water are becoming more acute in terms of availability and quality. Another issue is no integration occurred on the interface between sustainable land use, watershed hydrology and reduced vulnerability to climate change. This project therefore focuses on this interface of water demand & availability, major land uses (forest land, agriculture/waste land and urbanisation) for water sustainability in the fragile Himalayan watersheds. The main focus of the project includes -baseline data generation, geo-hydrological investigation, LULC change study, recharge area identification, assessment of water requirements within the sub-watersheds and HRU level using the HYDRA and the SWAT hydrologic models, model development for ground water augmentation, land use model demonstration, generation of decision support system. Finally, main outcomes of the project are: DSS for Efficient Water Allocation Strategies for competing land uses, Land Use Policy guidelines with efficient water allocation, Tool for complementary water budgeting at watershed level, Performance indicators for monitoring & evaluation of land use plan.