The present study evaluates the existing district-wise cropping system of Kharif and Rabi season prevailing in Telangana State of India. In kharif season, it was observed that all districts of the states are water surplus and whereas during Rabi season all districts become water deficit. In order to enhance the agricultural production and agricultural based rural economy, alternate cropping system were suggested. Due consideration was given to the existing water resource and farming practices prevailing in the respective district. Re-appropriation of area under various crops was suggested for two scenarios namely, ‘A’ and ‘B’, aimed for reduction in crop water requirement by 10 % and 20 %, respectively. In scenario ‘A’, it was suggested to reduce the area under transplanted paddy and ground nut by half and 40% respectively,in kharif season and substantial enhancement in the area under redgram. For rabi season the area under transplanted paddy could be reduced to half for scope to double the area under oilseed. The scenario ‘B’ however is feasible in 3 districts, suggests restricting the area under groundnut to comprehensive increase in pulse area. For rabi in scenario ‘B’, it is recommended to further reduce the area under oilseed, paddy and other crops allows more crop diversity including millets, sorghum and caster. The economic analysis suggested that the alternate scenario has the potential to significant ly improve the benefit cost ratio apart from enhancement in water productivity.