Various climatic and anthropogenic factors have worked cumulatively to inflict severe damages to the ecology and the livelihood support systems of the people in Attappady. Apart from physical and climatic factors peculiar to the region, massive encroachments over forest and cultivated lands, introduction of unsustainable cropping systems, and grazing etc. had all contributed in inflicting heavy damage on the ecosystems. The severity of the damage had become all too evident in all components of the ecosystem – water, soil, plant and animal species in the forest and other lands.  

Due to deforestation in the catchments and also due to the presence of several water diversion schemes, water had become unavailable when and where it was needed, creating greater dependence on ground water sources. Most of the perennial springs that once dotted the hilltops of Attappady had disappeared. Water quality had worsened considerably and the polluted water used for drinking and cooking had become a source of diseases and ill health of the people of Attappady, especially the tribal people.

The run-off rate of the rainwater increased due to loss of vegetation and hardening of surface soil. The beds of the streams and rivers got filled up with sediments. Weathering had caused drastic changes in the terrain of the area. The changes in the structural and chemical properties of soil had altered the overall land use pattern. The extent of soil erosion in Attappady is one the highest in the State. Extensive felling of trees and the tillage along the slopes, using bullock-driven ploughs- which were never a part of the traditional tribal agricultural practice have led to soil runoff and depletion of the groundwater. As the fertility of soil was declining, even more unsustainable practices such as using the thin topsoil for making bricks came into vogue in eastern Attappady.  

At the time of planning for the Project, a considerable part of the land surface in the area had become impervious. Agricultural practices were no longer in tune with water availability or local requirements of food security.  

A significant cause as well as indication of the ecological imbalance of Attappady is the widespread destruction of the natural plant species of the area. The various impacts due to the degradation of the ecosystem were evident in all the three broad categories of land in Attappady, viz., private agricultural holdings, land belonging to the tribal communities and land under the control of the government, including the river banks, roadsides etc. The net result of this widespread ecological degradation was that nearly 507 sq. km out of the 745 sq. km.of total land area of Attappady was classified as wastelands.

The ecological degradation, as well as weakening of life supporting systems followed the large encroachments over forest and resultant deforestation. Un scientific cultivation practiced over the cultivable land along the steep slopes and valleys further degraded the ecosystems and badly affected the lives of the people, especially the tribals of the area. 

To sum up, at the time of project initiation, Attappady was a developmental challenge, exhibiting following characteristics: