The high arsenic content of the groundwater in the Holocene aquifer of the Bengal delta plain is unique and elusive in the extent of its exposure causing a threat to the lives of millions of people in the region. The thesis presents a general review on the arsenic contamination of the aquifer in the region with special emphasis on the mobilisation and mitigation issues and stresses the need for the holistic approach for sustainable development of the groundwater resource. A contingent valuation study ( CVM) was conducted to survey the residents of a arsenic affected village about their willingness to pay for arsenic free water in place of arsenic laden water they were getting for drinking and cooking purpose. CVM uses surveys of expressed preferences to evaluate the willingness to pay for non-market, environmental goods. Assured, affordable and sustainable safe water resources are vital for all community to combat an arsenic disaster. Competent water resource management could playa key role to solve the arsenic contamination problem. The study conducted focused on the role of the cooperative and non cooperative extraction of groundwater on sustainable exploitation of a jointly used groundwater resources Water scarcity and its contamination are biggest challenge to the scientific community. The rising cost of generating new supplies and the scarcity of safe and uncontaminated water resource has led to increased emphasis on the better management of the existing water resources. An analysis of deficit irrigation in three quite different situation using five crops viz potato, wheat, maize, onion and sesame was conducted to better understand the potential benefits and risks associated with the irrigation strategy. Crop yield function and crop function were developed and is used to estimate the level applied water that would produce maximum net income in each situation