Gosikhurd Irrigation Project is a major Irrigation Project of Maharashtra state. 93 villages are fully affected and another 107 villages are partially affected due to this Project. The study is carried out in 07 Affected Villages of Bhandara district which are being shifted in 07 Rehabilitated Villages. In this study comparison of project affected persons before and after economic condition in construction of Gosikhurd irrigation dam. The project was declared as ‘National Irrigation Project’ by the government of India. The project is still incomplete and there are gross irregularities in rehabilitation of effected people. This research is largely base on the primary data collected through questionnaire and secondary data collected from government documents, reports etc and on the information collected from officials, environmentalists, activists and other concerned people.