Climate change poses a major threat to the semi-arid tropics, which is characterized by scanty and uncertain rainfall, infertile soils, poor infrastructure, extreme poverty and rapid population growth. These conditions present serious environmental, economic and social impacts on the agricultural community. In recent years, adaptation to climate change has become a major concern to farmers, researchers and policy makers alike. To enhance policy towards tackling the challenges that climate change poses to farmers, it is important to have knowledge on their perceptions of climate change, potential adaptation measures and factors affecting adaptation. In addition, the extent to which farmers' perceptions on climate change coincide with actual climatic data needs to be further examined. This paper, using a qualitative approach, looks into the perceived changes in rainfall and temperature, their impacts and adaptations strategies taken up by farmers in four villages in the states of Maharashtra and Andhra Pradesh. It also analyses the accuracy of these perceptions based on actual available climatic data. The paper also looks into the determinants of adaptive capacity by examining a case of improved water management as an adaptation mechanism.