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Climate change adversely affects the determinants of agriculture. Adaptation serves as an important strategy to reduce the adverse effects of climate change (variability) and vulnerability of the people. Adaptation through an innovation programme was implemented for 4 years during 2012-2016 to improve the adaptive capacity in agriculture and the water sectors through capacity building and implementation in the Krishna River Basin, India. Primary data were collected from 178 farm households of the Nagarjuna Sagar Project command area covering both adopters and non-adopters of water-saving interventions from the study area. The double difference method was used to analyse the impact of adaptation through capacity building and implementation. The water-saving interventions include alternate wetting and drying (AWD) in rice, a modified system of rice intensification (MSRI) and direct seeding of rice (DSR). The capacity building and water saving increased crop yields by 0.96, 0.93 and 0.77 t ha(-1) through AWD, MSRI and DSR respectively. The three practices have increased farmers' income and decreased the cost of cultivation in DSR by Rs.11 000 (US$169) ha(-1). The methods can be more focused in canal commands on a larger scale for equal distribution of water to all the head, middle and tail-end regions. (c) 2018 John Wiley & Sons, Ltd.