Nepal is a part of Hindukush mountain region, characterized by fragility, inaccessibility, marginality, diversity, niche, dispersal of settlements and heavy pressure of population (Jodha, 1990). The landscape of the country is predominantly composed by mountain, hill and terai where the mountain and hill are covered by 83 percent of the total area. These hills and mountains are formed large number of watersheds and countless number of sub watersheds (SCWMIN, 2001). Watersheds are unique in environmental and resource characteristics, which are showing potential for unique products and activities such as horticulture, vegetables, animal husbandry, forest and NTFP products and electricity. Many areas offer best opportunities for developing tourism (Pradhan, 2001). Moreover, people's traditional practices for adaptation to specific mountain conditions or indigenous knowledge systems are an important resource. Yet, the bulk of the potential resources are either under-utilized or not properly harnessed. During the recent decades, watersheds are highly vulnerable due to causes of high population pressure, deforestation, accelerated soil erosion, flooding, loss of biodiversity on site that has directly affected to the socio and economic activities of people (Shah, 1995). Watershed management is a process of managing human activities in an area defined by watershed boundaries in order to protect and rehabilitate land and water and associated aquatic and terrestrial resources. It is a tool to assist those making decisions regarding land and water use (Bhatia, et al. 1998). The practice of watershed management has widely developed over the last few decades to become more comprehensively by integrating and addressing a broader range of resource and environmental protection issues and more thoroughly evaluating the important linkages between land and water, between surface and groundwater, between water quality and water quantity and between watershed management and rural development planning. Effective watershed management and conservation of resources need active public participation. In Nepal, the strategy for watershed management has been formulated through participatory effort after the establishment of Department of Soil Conservation and Watershed Management. The strategies have been regarded to utilize all means of conservation, which will reduce pressure on the natural environment, improve the productivity, generate income and enhance the livelihoods of the local communities. After 80s, government has been adopting 'participatory' approach in the process of developing Five-Year Plan. During this time, national level consultations have initiated for participatory planning where different level of organizations like government, local government, NGOs, local organizations and local people have been participating in the process of planning, implementation and other development activities.