Common property resources played a very important role in the livelihood of rural poor in India. These resources which are traditionally managed by the village panchayats, gradually declined in their quality and quantity, forcing the user groups into severe survival problems. On the other hand, developmental programmes introduced by the state did not take into account the local resource use pattern. These programmes are basically designed, keeping in view the PPR based farming, resulting in the development of rich farmers than the landless poor and other occupational categories. In this paper an attempt is made through a case study to trace out the impact of development programmes on common property resources, their decline and the consequent changes in socio-economic conditions of the village.