Arid regions are primarily characterized by high temperature, high evapo-transpiration, extended dry spells, and low precipitation resulting in scarcity of water. The challenge in the area includes marginal land ownership, dependency of wage labour and scarcity of water, lack of rural infrastructure due to larger districts and outreach of various government initiatives to rural poor. The climate change phenomenon is slowly becoming all the more evident, and its presence is being felt globally. These changes are bound to worsen the already harsh and hostile arid zone conditions. Development in the dry lands depends on addressing degradation of the ecosystem, mainstreaming sustainable natural resources management and building upon the existing adaptive capacities of people and institutions. It is thus necessary to ensure economic access to food, have contingency crop/fodder/drinking water plans, crop stabilization and watershed development programs, community based natural resource management practice, organic farming to increase land productivity, revitalization of traditional crops and practices to ensure food security, and revitalization of traditional breeds of livestock. This article discusses the characteristics and challenges of the dry lands and offers recommendations for a cohesive and sustainable approach that can lead to development and prosperity in the region.