Peoples’ participation has been at the centre-stage of the resource conservation and rural development efforts in the developing countries. The study on peoples’ participation in watershed development programmes in Rajasthan has revealed that a very low proportion of beneficiaries is contributing at different stages of the programme in terms of either labour or finances or both. The determinants of participation have been identified using Tobit regression. The institutional effectiveness has been found as the key factor towards guaranteeing involvement of people in the watershed programmes. The other factors positively related with peoples’ participation are training of farmers, age, and frequency of the visit of extension workers. A negative relationship has been found between participation and off-farm income. Therefore, efforts should be made for developing effective local institutions, capacity building through training of farmers and providing off-farm employment opportunities in the countryside itself for safeguarding the livelihoods of people in the rainfed areas.