Rainwater harvesting and its utilization have a very important role to play in harnessing the production potential within dryland systems. This study assesses the performance of small rainwater harvesting structures (farm-ponds) in 5 major rainfed states of India over the period 2009-2011 using data from multiple sources and stakeholders. Rainwater which is harvested using structures of varying types and sizes was used for either supplemental irrigation or recharging open-wells. In many cases, the farm level rainwater harvesting structures were highly effective for rainfed farming and had a multiplier effect on farm income. In some situations however, it was viewed by farmers as a waste of productive land. The use of farm ponds in Maharashtra, for example, resulted in a significant increase in farm productivity (12-72%), cropping intensity and consequently farm income. In the Chittoor district of Andhra Pradesh, farm pond water was profitably used for supplemental irrigation to mango plantations, vegetables or other crops and animal enterprises with net returns estimated to be between US$ 120 and 320 structure(-1) annum(-1). Despite such examples, the adoption of the farm ponds was low, except in Maharashtra. A functional analysis of the reasons for high adoption of water harvesting structures indicated that factors such as technical support, customized design, level of farmer participation, age, existing ownership of open wells, annual rainfall and household assets were the major determinants of performance of farm-level rainwater harvesting structures. Based on this countrywide analysis, different policy and institutional options are proposed for promoting farm-level rainwater-harvesting for dryland agriculture. (C) 2016 Elsevier B.V. All rights reserved.