The paper describes the methodology and strategy adopted by the RDP Group to prepare and facilitate the implementation of the first action research project located in Dharampur, and the lessons it gained in the process. The paper is presented in two parts. The first part describes the methodology adopted by the Group to prepare the action plan and the institutional linkages it established to facilitate its implementation. Towards the end of this part questions having a wider bearing have been raised to underscore certain concerns crucial to the task of improving the lot of the rural poor. The second part contains further details of the methodology the Group followed to study the area's resources, growth constraints, development potentialities, social structure, functioning and structure of development administration and other agencies in the area. Most of this information was collected from secondary sources. A list of these sources is given at the end of the paper. The paper was presented by the author at the Second Seminar on Management Research held at the IIMA on January 19-20, 1978.