In India farmers Welfare-oriented legislations since independence resulted in abolition of inamdari landholding pattern and hereditary village offices? Also, there were changes in the land use pattern resulting increase in net returns in farming economy. The gradual spread of alternate means of irrigation (bore well and use of electric pumps) contributed to increase in farm income. In this study, Net returns from various sources and incremental net returns of the Farmers due to canal water of Cauvery command areas is studied in Tumkur district, which is known as hard rock areas of Karnataka State. This study is a modest attempt of analyzing the Net returns from various sources and incremental net returns to the Farmers of Cauvery command areas under three situations of recharge in Tiptur taluk, Tumkur district of Karnataka. Here the irrigation wells located under canal command (GWCI) (Gadabanaalli), the irrigation wells located under tank command (GWTI) (Echanur), receiving the Hemavathy river water and another village Kibbanahalli where groundwater wells are located independely without canal or tank command (called groundwater under sole irrigation GWSI), which depend only on rainfall source have been considered. The net return per rupee of water, the net return per kg of output, is higher in both GWTI and GWCI compared to GWSI. Considering the income from Agriculture, non-agriculture and livestock, the net return per acre of net cropped area is the highest in GWTI and GWCI compared with GWSI. This shows that in addition to agriculture, the GWTI and GWCI farms have exhibited efficiency even in non-agriculture and livestock sources of income when compared with medium and large farmers. The incremental net return is computed between GWTI and GWSI, it turns to be positive for all sample farmers. The supply of water through channel system has contributed substantially for farmers who are totally dependent on agriculture.