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Agriculture is an important engine to grow and to alleviate high level of poverty in the rural setting. Dependency of agriculture on the quality of soil and availability of water is soaring, as soil and water are fundamental elements for plant based food production system for human sustenance. During the management practices of agriculture, efforts to gradually boost productions up for food are in many times impacting negatively on the quality of soil and water. Many factors have been identified as reasons for poor farming practices; over cultivation, low sufficient means and skills to apply sustainable farming practices, inadequate infrastructure availability, few access to credits, lack of government incentives and policy supports etc. are some of examples. Uncontrolled destructive farming practices have been recognized since it is resulting in low crop yields. However, with limited resources available, many small farmers have creating simple innovation to convince production processes can be done. This study was done within qualitative method, exploring the ways small scale farmers develop innovation in the farming system adjusted to local ecological knowledge and resources. The study is explaining best practices of soil and water conservation initiated by farmers, trying to protect the region from detrimental habits on the land management practices. Physical and institutional arrangements have been taken to stop soil erosion and to sustain water availability. Physical treatments are including tree planting, stone bench terraces, gulley plugs, silvipasture, all technologies were built independently by groups of farmers. Local institution namely farmer groups aimed to support development of conservation norms have been established. This institution also serves economic development of local communities since family welfare and rural economic stability is very crucial to convince sustainability of conservation activities.