Water is one of the most essential natural resources required for the survival of all life forms on Earth. With the increase in population and the advent of urbanization, water demand is soaring higher. This is leading to a severe water crisis, especially in the arid regions. Water is necessary for agricultural, industrial, household, and other domestic purposes. The already available water is also being affected by pollution and contamination, making it unfit for various uses. Therefore, it is crucial to manage this natural resource sustainably. Hence, we need proper management and development plans to conserve, restore and recharge these water resources where the soil loss is very high due to prevailing topographical conditions. The study area considered includes parts of the Bankura and Purulia districts of West Bengal, covering an area of about 20 sq. km. The soil strata in this region are laterite based and are one of the arid zones in West Bengal as an extension of the Chotanagpur Plateau. This region's main challenge is preserving surface water during the rainy season and utilizing it judiciously for socio-economic development. Water resource management and catchment delineation have been done in the respective micro watershed using GIS, remote sensing, and interactive tool development by Python. The outcome of the study has provided an alternate intelligence on potential schemes that can be constructed based on the capacity of already existing water resources, estimation of meteorological and hydrological variables, precision on crop selection, and defining beneficial agriculture strategies.