We argue that both, the system of technology generation as also transfer in dry regions/rainfed high risk environments have to be differently designed than the systems suitable for irrigated regions. In Part-I, we discuss the characteristics of dry region and implications for participative organizational design. Various dimensions discussed include: ecological diversity; low population density and poor demand system; lack of timeliness in operations; inability of markets to act as monitors of farmers' needs; rainfed economy is not just crop centered; survival through commons; need for research on group based technologies as against individual based technologies etc. Part-II includes the concept of horizontal diffusion and a brief review of literature on the subject. Part-III provides socio-ecological implications for institutional restricting such as, (a) need for on-farm research, (b) concept of ecological mapping, (c) method of manual discriminant analysis, (d) building upon local knowledge, (e) ethics of knowledge transfer, (f) agro-industrial watershed, (g) sustainable institutional design through linkage between communication and power etc. Need for incorporating concerns of women and poor multi-enterprise rural households is highlighted. It is suggested that instead of technology transfer, emphasis in future will have to be on science transfer. This will help people develop technologies by linking formal and informal knowledge system.