અણ્ણા હઝારે realized that the only way to increase agricultural production in a sustainable manner was to build a better irrigation system. Taking into account the geographical location of Ralegan , located in the foothills, અણ્ણા હઝારેpersuaded villagers to construct a watershed embankment to stop water and allow it to percolate and increase the ground water level. He motivated the residents of the village into "shramdan" (voluntary labour) to build canals, small-scale check-dams and percolation tanks in the nearby hills for watershed development; efforts that solved the problem of scarcity of water in the village that also made irrigation possible. The first embankment that was built using volunteer efforts developed a leak and had to be reconstructed this time with government funding.

હઝારે also took steps to stop the second big problem, soil erosion. In order to conserve soil and water by checking the run off, contour trenches and gully plugs were constructed along the hill slopes. Grass, shrubs and about 3 lakh ( 300,000) trees were planted along the hillside and the village. This process was supplemented by afforestation, nullah bunds, underground check dams and cemented bandhras at strategic locations. The Watershed Development programme became a huge success and helped increase the fortunes of many farmers as they now had a reliable source of water. Ralegan has also experimented with drip and bi-valve irrigation in a big way. Papaya, lemon and chillies have been planted on a plot of 80 acres (320,000 m2) entirely irrigated by the drip irrigation system. Cultivation of water-intensive crops like sugar cane was banned. Crops such as pulses, oilseeds and certain cash crops with low water requirements were grown. The farmers started growing high yield varieties of crop and the cropping pattern of the village also changed. He has helped farmers of more than 70 villages in drought-prone regions in the state of Maharashtra since 1975.

The Government of India plans to start a training centre here to understand and implement હઝારે's watershed development model in other villages in the country.

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