The study results showed that due to advent of market economy the resource system changed from range based livestock production and rain fed agriculture to irrigated mode of agriculture supported by tube well/dug well and sedentary and household level livestock production systems. This triggered changes in the settlement pattern in human communities from nomadic and transhumant to resident communities. With this change in the settlement pattern, the earlier prevalent joint family system gave way to the extended family system. Similarly the human behavior also changed with increasing territoriality, weakening of social bonds and communication, lowering levels of altruism and a multiplier effect reflected in the adoption of new innovation. These changes also brought about alterations in the physical environment i.e. natural resources being used in the resources system. Rangelands of the area, previously protected/managed for community livestock use assumed the role of open to grazing areas and were invaded by herders/nomads from outside. Livestock of nomads grazing the rangelands brought with them new ecto/endo parasites which not only infected the local livestock populations but were also source of pollution in the water. Rangelands also showed signs of deterioration due to overstocking and heavy/overgrazing. Based upon study results it is recommended that introduction of new resource process in a stable resource system needs careful thinking so that not only the human – environment relationship could be maintained in a harmonious manner but also support the existing social order.