Soil and water conservation and improved crop management programs were initiated in 1983 to increase the productivity of a dryland vertisol watershed in the state of Andhra Pradesh in the semi-arid tropical region of India. This was one of 47 model watersheds developed by the Government of India. The integrated program consisted of measures to conserve soil and water, such as a percolation tank, grading, checks, and deep tillage, on which were superimposed improved crop management practices (e.g., cultivars, fertilizers, and timeliness in operations), carried out with the farmers' cooperation and partial payment. All participants were surveyed in 1983, before starting the program, and 1988, after completing the program. The equilibrium water levels in open wells increased about 50 cm, which allowed sugarcane to be introduced. About 10% additional area was reclaimed and cultivated after construction of a diversion dam. Fodder supply improved because of the growth of natural grasses on terraces formed by stone checks in waterways. Soil and water conservation efforts reduced runoff about 26%. Ground cover increased by 38% because of increased cropping intensity, and income per capita grew by 67% per year. Thus, the integrated approach conserved natural resources and improved productivity.