Delineation of the watershed and drainage is among the prior requirement of any organised hydrological study. Delineating watershed is important for elucidating the geo-hydrological conditions of any geographical space. This study aims to explore the vitality of Digital Elevation Model (DEM) data in calculating the flow accumulation, flow length, drainage pattern and watershed basin delineation of Punjab as well as elevational profiling district wise and delineating the catchment density. The potential hydrological system developed is based on 1 arc second Aster GDEM data. Depression less DEM is deve- loped by filling process. Furthermore flow accumulation, drainage pattern and watershed is demarcated on the basis of derived stream channels. This study presents the effectiveness of DEM data for hydrological studies and introduces a better method of water management in Punjab province of Pakistan.