Strengthening the University of Arizona's competency in the area of watershed management utilizing systems analysis techniques applied to problems of less developed countries has taken several forms. The addition and revision of pertinent course curricula, the analyses of research programs and the addition of new faculty are items that occurred in the early stages of the 211 (d) Grant. The improvements in teaching facilities, the accomplishments in the research program and the rendering of service that occurred during the second year of the Grant will be briefly reviewed under the headings of teaching, research and consulting.