Through geospatial technology, land use and land use change in the watershed area and socio-economic drivers of change were analyzed. About 811 ha or 11.23% changed from mixed forest and unstocked forest to other used in the watershed. The slash and burn land area and rice field in the watershed are increased 693 ha and 79 ha, respectively. The built up land area was increased by 7 ha, while the fishpond increased by 8 ha. The major factors that affect the land use of the upper watershed include population change, migration, shifting cultivation, forest products, and non-timber forest products, fishpond development and land market demand. The information system management in the watershed needs to be improved and land use planning should be in place. Promotion of community-based forest management is needed to control the resources use and reduce the influx of migration from outsiders. Further, there is a need to formulate specific legal framework in forest resources used in this area, review of control measures in private forest land use, revision of land allocation in the watershed and improvement of cooperation among state organizations in the watershed. Preservation of current situation of forest is an emergent issue for consideration.