This paper describes a micro-level planning methodology for primary health care service which has been developed and tested in India. As compared to current top-down target-based planning, the methodology uses village level data on client needs to formulate micro-level plans aimed at improving service coverage. A quick sample survey to assess service need, coverage-gaps and reasons for non-utilization of services form the basis for identifying village level variations and developing village profiles. From such disaggregated analysis of data general interventions for overall service-coverage improvement and targeted interventions for selected villages are also identified. This system was tried out in 113 villages of three Primary Health Care centres of a district in Gujarat state of India. It demonstrated the feasibility and utility of this approach. However, it also revealed the barriers in the institutionalization of the system on a wider scale. The proposed micro-level planning methodology would improve client-responsiveness of the heath care service delivery system and provide a basis for increased decentralization and community involvement. By focusing attention on under-served areas, it would promoted equity in the use of health services. It also helps improve efficiency by focusing the efforts on small group of villages which contribute to most of the service coverage gaps.