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The paper deals with the application of Remote Sensing and Geographical Information System (GIS) technique for a watershed development program. For this study, the WRJ-2 watershed falling under Narkhed and Katol Tahsils of Nagpur district, Maharashtra, India is investigated. Various thematic maps (i.e. drainage, geology, soil, geomorphology and land use/ land cover) have been prepared using the remote sensing and GIS techniques. Initially, differential weightage values are assigned to all the thematic maps as per their runoff characteristics. Subsequently, the maps are integrated in GIS environment to identify potential sites for water conservation measures like gully plugs, earthen check dams, continuous contour trenches, percolation tanks, cement bandhara, afforestration and farm ponds, etc. The study depicts that the GIS technique facilitates integration of thematic maps and thereby helps in an identification of micro-zones each with unique characters in-terms of hydrogeology, thus amenable to specific water conservation techniques. It is therefore concluded that, the GIS technique is suitable for an identification of water conservation structures.