The purpose of this article is to clarify the socio-economic structure of a Banjara Caste Village, Naharkheda in Indore District, Madhya Pradesh, which did not enjoyed the effect of a dam construction near by. Naharkheda is located in Vindhya Range remote from the District center and used to be suffering from droughts. In addition, the villager belongs to one of lower caste groups, so it was thought that they never developed without public aids. The following results were obtained 1) Naharkheda was a forest revenue village till 1962. Beside the cultivation, they were able to enjoy 'Nistar Right' which was a privilege to use forest resources. After a loss of the right due to the transfer to a revenue village in 1962, they came to economically depend on agriculture and animal husbandry. 2) There was so small portion of irrigated land that cultivation was mainly conducted in Karif season. Judging from the introduction of commercial crops and improved seeds, the authors thought their will to agriculture was high. Another important economic activity was to rear milch animals for selling milk. Especially the number of she-buffalo has been increasing for the last 30years. But, once a drought happened, both crops and animals were always damaged because there was no irrigation facility in the village. 3) According to the expansion of agricultural activities, the villagers input a lot of money to purchase fertilizers, agricultural chemicals and fodder etc.. Furthermore, whenever they were suffering from a drought, they had to purchase livestock to compensate for their losses. They borrowed money from private money lenders with high interest with the result that they owed a lot of debts. 4) The largest project which has ever been conducted in Naharkheda was a construction of Choral Dam financially supported by the World Bank. This project aimed to irrigate 3,900 hectares of agricultural land in 27 villages in Mhow and Indore Tahsil. Though Naharkheda was one of the most adjacent villages to the dam, water supply for agricu