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Bago River is an important river in Myanmar. Although shorter than other rivers, it has its own river system, and people along the river rely heavily on it for their daily lives. The upper part of the watershed has changed rapidly from closed forest to open forest land in the 1990s. Since the recent degradation of the forest environment, annual flooding has become worse during the rainy season in Bago City. This paper aims at determining soil conservation prioritization of watershed based on soil loss due to erosion and morphometric analysis in the Bago Watershed by integrating remote sensing and geographic information system (GIS) techniques. In this study, soil erosion of the Bago watershed was determined using the Universal Soil Loss Equation. Such factormaps as rainfall, soil erodibility, slope length gradient, and crop management were compiled as input parameters for the modeling; and the soil loss from 26 sub-watersheds were estimated. Then, the soil erosion maps of the Bago watershed for 2005 were developed. The resulting Soil Loss Tolerance Map could be utilized in developing watershed management planning, forestry management planning, etc.