Creation of environment awareness is a very essential function of Panchayats. Panchayats are the bodies responsible for the development and maintaining of sanitation and cleanliness and its management in a particular area under that panchayat. And now with the empowerment of the Panchayat Bodies they can play a catalytic role in terms of raising the awareness at the grassroots level. Panchayats can be the appropriate institutions to create awareness in the local people because Panchayats and village organizations are the people who have direct contact with the inhabitant people, know the problems of the area, have the potential to pursue the villagers and they can instill a confidence in the local people. They can also efficiently manage various critical problems of community life like, decision making and managing interpersonal conflicts etc. The Panchayats are the appropriate institutes to deal with the environment awareness because they can inculcate the sense of participation for saving the environment among the local people. The Panchayats can extend their organizational help in planning of various activities to save environment from degradation and to improve the environmental conditions, like water shed management, joint forest management, plantation, bio- composting, bio- gas plants, non-conventional energy sources etc. Panchayats can form groups of individuals devoted to upgrade the environmental conditions in the area. They can also help in providing the resources to these activities which are provided to them for rural development. Also Panchayats, as the governing body of the village can organize the environment awareness workshops in the area.