This research was carried out aiming to investigate positive and negative aspects of watershed practices and their effects on quantity and quality of water resources in Budejan River basin. This river is one of the main branches of Shour-Dehaghan River and its area plays an important role in supplying water for lower lands. In this regard, meteorological data, hydrology and other information and maps were collected. The volume of dam reservoirs and the amount of rainfall within two years of the project were measured by field studies and hydrology studies were carried out by field measurement and assessment of hydrologic conditions of the basin. Results showed that the water content generated by these practices is enough to recharge groundwater. Construction of dams tended to decrease water flow rate and reduced the destructive effects of seasonal flood and with increasing water infiltration rate, it has increased aquifer recharge in the study area. The low volume of dam reservoirs has not caused irregularity in water supply of downhill lands. However, the lack of proper management of these operations and the excessive development of gardens and agricultural lands, due to the ease of access to water, overshadow positive results of watershed practices and offset it by a very high cost.