The activities undertaken under the Mahatma Gandhi National Rural Employment Guarantee Act in Chitradurga district, Karnataka, were assessed for their potential to enhance and provide environmental services. Key programmes implemented in 20 villages during 2009 were studied using rapid scientific assessment methods. An indicator approach was adopted to analyse environmental services such as water for irrigation and improvement in soil quality. The status of environmental services before and after implementation of the activities was examined and vulnerability indices were constructed and compared. The activities were found to have reduced the vulnerability of agricultural production, water resources and livelihoods to uncertain rainfall, water scarcity and poor soil fertility.