AbstractA simple field‐based monitoring programme was established in a small catchment (area 4·6 km2) to find the rates of gully erosion in the Siwalik Hills, Nepal. The rates are used to estimate the amount of sediment produced by gully erosion in the catchment. Three large and active gullies were selected with areas ranging from 0·44 to 0·78 ha. Aerial photographs taken in 1964, 1978 and 1992 were ortho‐rectified and used to study the dynamics of gully heads. The same gullies were also monitored manually using an orthogonal reference system fixed by erosion pins around the gully heads. Results from the aerial photos indicated that the gullies expanded remarkably over the period from 1964 to 1992, by 34 to 58 per cent. Head‐retreat rates during that period were 0·48, 0·55 and 0·73 m a−1 and average annual sediment evacuation was estimated as 2534 ± 171, 959 ± 60 and 2783 ± 118 m3 a−1 for the three gullies respectively. From the field measurement, estimated volumes were found to vary from 731 ± 57 to 2793 ± 201 m3 a−1 over the monitoring period of two years. It was also found that the gullies produce sediment which accounts for up to 59 per cent of the sediment produced from surface erosion in the headwater catchment. The findings are useful for planning and executing appropriate control measures and constructing a sediment hazard map at the catchment scale. Copyright © 2006 John Wiley & Sons, Ltd.