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The rainfed Pothwar area of Pakistan is one of the most eroded areas where 20% of the total land is affected by soil erosion and 4.2 billion cubic meter of water is lost from surface runoff annually. Soil erosion, along with arid climate, erratic rainfall and undulating topography makes land productivity very low and the livelihood of rural people even hard. Soil and water conservation under such an environment could provide the foundation for agricultural and natural resource development. To develop appropriate technologies for increasing land productivity through soil and water conservation, applied research has been carried out during 2001-07 in the rainfed Pothwar area. Low cost soil and water conservation structures were developed and demonstrated in the area. The investment appraisal based on the cost incurred and benefits realized by the farmers recorded through assessment survey revealed that the technology had a short payback period along with internal rate of return varying in the range of 25-37% under rainfed conditions and positive net present value. The farmers' perceptions revealed that the technology can solve the erosion problem along with 10-35% increase in crop yield and save repair and maintenance cost incurred on eroded lands. The technology is compatible with farmers' resources and practices along with availability of the raw material and technical skills for its adoption. The results from the assessment and financial evaluation of the technology provide logical base for investment in up scaling the technology. [ABSTRACT FROM AUTHOR]