Interdependence of agriculture and forests offers the best opportunity to attain sustainable development through integrated watershed development. Intervention packages are becoming increasingly more comprehensive and intense; they need funding and must be more inclusive of forestry to cover new areas such as ensuring water availability, integrated pest and fertility management, use of contaminated land and water, equilibrium in carbon flux between land and air cycle and finally in enhancing the population-supporting capacity. Watershed modelling needs to incorporate this diversity for planning, implementation and impact assessment. A critical review of the organisational structure is needed to make it less administration-centric and more professional, including the use of multidisciplinary expertise and participatory management techniques so that it remains open, flexible and responsive to the situation on the ground.