The basic design principle of the Orissa Community Tanks Management Project (OCTMP) includes a sub-basin / watershed approach to tank selection and rehabilitation and is based on the concept of Participatory Irrigation Management. The ultimate project objective of OCTMP is to improve tank based livelihood systems and strengthen community management of selected tank systems in Orissa, which primarily necessitates the project to launch two fold interventions viz. i) Social Management Framework ii) Environmental Management Framework. Hence, as part of the project requirements the preparation of the above two frameworks are essential particularly, in order to ensure that the environmental and social compliance mechanisms are in place during pre-project initiation, project implementation and post project implementation phase. Fertilizer use in all the 25-tanks except in Silati tank command area, are below the standard recommended norm which is a positive indicator from environment point. But, if the fertilizer application dose will increase with the availability of water, it may pose threat to the ground water in the long run. However the following impacts may have some adverse effect on local environmental conditions: High vegetative growth hampers the productive phase; Due to high vegetative growth high incidence of pest may occur; Hard pan may result in the soil surface make difficulties in intercultural operation; Change in soil physical structure and texture; Ground water pollution due to heavy leaching of nitrogenous fertilizer (Nitrate pollution); Soil microbes will die resulting in deterioration of soil health; and Soil salinity may increase. The study concluded that there may also be negative impacts both in tanks and canals caused by aquatic weeds and fishery activity. In addition, improper management of construction and construction activities related to tank rehabilitation will induce adverse environmental impacts. more..