This chapter intends to measure the environmental sustainability in the context of dams. First, a global consciousness is reviewed against the backdrop of this chapter, which is followed by the Damodar Valley Corporation (DVC) context. This chapter uses two popular methods for assessing environmental sustainability: (1) a mathematical model of environmental sustainability and (2) the rapid impact assessment matrix (RIAM). These two methods are the pillars of the environmental sustainability assessment in the context of dams and development. This chapter has depicted the spatial variation in the sustainability parameters above and below the dams with respect to selected villages in the Damodar River Basin. This chapter also indicates the environmental degradations at the basin scale that need attention from various stakeholders.