Water is one of the five basic elements on the Earth and is the most essential element for life. Even though the majority of the Earth's surface is covered by water, consumable fresh water is not ubiquitous. Fresh water for Domestic, Industrial and Irrigation is always at demand in all parts of India in general and Andhra Pradesh in particular. Within Andhra Pradesh the severe drought conditions are predominant in the most backward district i.e., none other than Mahabubnagar District. Within the district, Gadwal Mandal, when observed in the Satellite Imagery as well as in the field, presents two extreme conditions of drought and surplus conditions. Therefore water problem in the present work is addressed at Micro Watershed level using GeoSpatial Technologies and studies on Environmental Impact Assessment of the study area. It is observed in the present work that Watershed Management Approach is the best suitable practice particularly in parts of Andhra Pradesh and India in general for its Participatory Approach. The present work illustrates the utility of GeoSpatial Technologies for its quick reconnaissance and holistic analysis using Geotagged data and its future applicability.