Rapid assessment of the capacity utilization of water resource project (catchment, reservoir and command area) is required to meet existing and future demands. Dynamic information derived from temporal satellites and spatial ground based data will give an accurate data. A methodology for quick appraisal has been developed. It was tested over the Bhogawati River basin in India. Spatial distribution of degraded areas in the catchment and potential cultivation areas in command areas were demarcated, in addition to the growth in the crop area during the past 30 years.